Fraud in IPv4 Market Calls for Extra Precautions from Sellers and Buyers

After a precedent-setting case ruling, a need for more transparent IPv4 market becomes evident

Earlier this month, ARIN, American Registry for Internet Numbers, won a critical legal case which set a precedent against IPv4 address fraud. The verdict determined that ARIN was defrauded of approximately 735.000 IPv4 addresses by an individual who used 11 shelf companies to do so. The perpetrator was ordered to return the fraudulently obtained resources and cover $350.000 of legal fees.

As the prices of IPv4 addresses are rising due to exhausting supplies, this case might be the first one of more to come. Meanwhile, the emerging second-hand IPv4 market creates opportunities for both transparent IPv4 brokers and fraudsters alike.

“The current state of the IPv4 market urges IP address buyers to be aware of their IPv4 supplier’s reputation. Reputable companies don’t take abuse control lightly to protect the assets they are leasing. The seller must guarantee the legitimate origin of their supply and the buyer must not use the assets in illicit ways,” said Vincentas Grinius, CEO of Heficed, an IP address-centric company offering IP address, cloud, and dedicated server solutions.

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