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