You don't understand the new system.
The bidders all see the player at a level commensurate with their level, and at an equivalent cost. So you're bidding 20M for the player, your opponent is offering a bid much higher (and you're seeing that converted to a cost for your level).
There's no scam, its just the way it works now.
See this thread for more info:
New Auctions Tutorial - Changes & New Features