Imagine paying $30,000 for a block of IP addresses, only to find out the seller never owned them.
Your money is gone, the seller has vanished and your network is still stuck. That scenario occurs far too often these days. IPv4 address blocks are becoming a scarce resource. Scammers are taking advantage of this. Here's what you should do if you are purchasing IPv4 space.
Why IPv4 Scams Are Growing
The world has run out of new IPv4 addresses years ago, and today, the only source of obtaining them is through purchase means from an existing owner. This has led to the creation of a competitive secondary market. Naturally, where there is such demand and profit, scammers emerge, offering both fraudulent and blacklisted IP addresses for sale. Some dishonest vendors even lease out the same numerical IP address to multiple clients, while others offer hijacked or blacklisted IPs.
Red Flags to Watch For
• The price is too good to be true: If a seller offers a price significantly below the market value, it is necessary to take this information with a grain of salt. A high discount on a desirable IPv4 block is a clear indication that the owner is not in the position to make this deal.
• Seller does not want to provide any proof of ownership: Any owner of an IPv4 block with a history can provide the necessary documentation so that the buyer can verify the details of the block. Representatives of scams will try to avoid providing this information.
• Seller does not want to go through the official procedure of the transfer: An official sale of a block of IP addresses should be made with the approval of a registry of a particular region (RIR). If the seller says that it is not necessary to turn to them, this serves as another indicator of scam.
• Seller is pressuring the client to complete the deal as soon as possible: Scammers often use such phrases as “another buyer is waiting” and provide other examples of urgency. It should be noted that real estate transactions of this type do not require haste.
• Seller offers to complete the transaction only in certain payments: If the scammer offers to pay a large sum in Bitcoin or any other cryptocurrency or a non-traceable transfer, this is a suspicious method.
• Seller does not have a legitimate business: One of the signs of a scam is a new company that does not have any reviews and is not registered in all regions. A reliable company will have a website where you can track the necessary details of the transaction.
How to Verify a Seller Step by Step
Check the registry records: look up the IP block in question in the WHOIS database of the relevant RIR to make sure that the organization name matches that of the seller.
Use a registered broker: several registries maintain a list of approved brokers and making a purchase through them significantly reduces the risk of an IP address theft.
Ask for documentation: **request the company's registration papers and authorization to resell the IP addresses and ensure that the details match the information provided by the seller.
**Check the reputation of the block: run a blacklist check on all of the IP addresses you are planning to acquire to ensure that the seller does not have a history of scams.
Check the routing history: verify the block's routing history to ensure that it was not hijacked in the past.
Use escrow and a contract: opt for an escrow service to make sure that the payment is only transferred to the seller after the buyer receives the IP address. The contract should state all of the conditions of the deal and outline the terms of the transfer and cancellation in case of fraud.
A Quick Pre-Purchase Checklist
• Seller is identified, his company is verified
• Ownership is registered
• Block is checked for blacklists and routing problems
• Transfer will be approved by the RIR
• Escrow and a written contract are in place
• Price is in the normal range
If any of these points are missing, you should stop the deal.
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