Cheating in IPv4 Secondary Market Necessitates More Precautions

In May 2019, ARIN won an important case. The court verdict found that a person defrauded the regional internet registry (RIR) of 735,000 addresses using 11 shelf corporations. The court ordered the perpetrator to give back the fraudulently taken resources, and pay the RIR $350,000 in legal charges.

IPv4 address prices are increasing because of exhausting supplies, so this might just be the start of many more cases to come in the future. Meanwhile, the secondary IPv4 market makes opportunities for fraudsters and registered IPv4 address brokers.

The present condition of the secondary market urges purchasers to know the reputation of their supplier. Reputable organizations take abuse control seriously to make the resources they lease safe. The seller has to ensure that the supply comes from a legally valid place, plus the purchaser should never use the resources illicitly.

The market is no isolated occurrence, but instead a sign of an issue that is more complicated due to many reasons. AFRINIC is the lone RIR with a pool of available IPv4 addresses. The other registries have used up the free assets over the last 10 years, with ARIN arriving at this crucial juncture in 2014. This means leasing such an IP address in the secondary market is the lone way to make it available for buyers.

Like all resources with low supply and high demand, a wide variety of illegal and legal practices are used to get and sell IPv4 addresses again. Brokers worth their salt implement a wide range of abuse prevention procedures to confirm that what they lease are not contributing to illegal schemes.

That said, the secondary market is scattered across numerous IPv4 brokers, plus the industry’s requirement for a more transparent solution is not yet met. For these reasons, a lessee has to take certain precautions when getting IPv4 address spaces from brokers.

Every person keen on leasing these resources has to look into the third-party they are going to trust. The customer has to consider how reliable the tools for checking the record of a particular address is. Besides that, they also have to think about the broker’s reliability; to check this, consider the following.

  • The length of time the broker has been operating.
  • The opinion of other clients regarding the brokerage service provider.

Fraudsters are leeching on public IPs, so buyers and sellers should put more effort into reducing the risks associated with various address abuse types.

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