Many knowledgeable observers and respected analysts of the trade have noted, for example, that particularly in these arduous international financial instances, many crooks, scammers and fraudsters with truly no actual crude oil to sell, have trooped into the worldwide crude oil selling enterprise in great numbers, seeing it as a fertile ground for them in which, many of them assume, they’ll “strike it big” by scamming unsuspecting or gullible worldwide crude buyers, aided and made simpler for them by the Internet and the easier cover of anonymity that it supplies. Consequently, clearly, a well-established and settled Fact on the earth of worldwide crude oil shopping for and promoting enterprise immediately, is that that whole terrain is actually teeming and crawling with congenital scammers, and pathological crooks and fraudsters who parade themselves, particularly on the web, as crude “sellers.” (See, for an example, another article by this author published by EzineArticles.com, titled “Purchase Nigeria Crude Oil With out Fraud: How Authentic Crude Oil Sellers Can Find Ready Buyers.”).
CLUES & Signs FOR SPOTTING POTENTIAL CROOKS AND SCAMMERS
Given the above-described distinct actuality at the moment, are there methods in which you’ll spot or detect crude “sellers” who aren’t Respectable, or those who are more than likely simply scammers and fraudsters with no actual crude allocation or crude to promote?
The following are a number of the methods and indicators:
1. THE “Sign THE SPA,” “Sign THE CONTRACT” Sport.
Typically, a Buyer might get a seller or his agent who aggressively pushes and presses that the buyer should simply “just signal the contract, just sign the SPA,” and that every thing else will work out for the buyer after that. Usually, such vendor or the agent will promise nearly heaven and earth, and commit to offering the purchaser just about any and everything whatsoever the purchaser asks of him, Offered that the buyer just signs the contract. He will, the purchaser will likely be promised, be instantly provided satisfactorily verifiable POP, or the 2% Efficiency Bond, or get the vendor’s profile, his proof of past track record or previous performance within the promoting of crude oil or of his creditworthiness, and so on., and so on – however only “after” the purchaser has signed the contract!
Be careful for such state of affairs by sellers or sellers’ agents! Many supposed sellers like that most likely do not really have any oil allocation or accessible oil to promote. Nevertheless, for them, the trick is solely to get some gullible purchaser to signal the SPA or Contract. After which once that is finished, such fraudsters will often deliberately fault the agreement indirectly or the other, and employ that as a ruse to demand a hefty penalty payment of upwards of $a hundred,000 or extra from the buyer. The purchaser will thus be pressured both to pay for a deal that by no means occurred, or else, to have the buyer’s Letter of Credit tied up, at maybe greater cost and expense to the buyer, till maybe he succumbs and pays up the scammy vendor’s “penalty.”
2. A Vendor WHO Needs YOU To move/PAY FIRST
A very good signal that you better make use of warning, is when a vendor desires you to make the transfer first on the sensitive Monetary facets of the deal, corresponding to requiring that you simply (the buyer) situation the Letter of Credit first before the seller will then concern the customary 2% Performance Bond to activate that LC. A less rip-off-prone means would be for the buyer (except it’s a widely known seller that is concerned) to have the seller transfer FIRST by issuing the PB from a good worldwide financial institution, as this can assure that the seller has the financial functionality to be ready to put up the PB earlier than the purchaser goes by way of the problem of putting up an LC, which may very well be quite an costly proposition for any purchaser. Scammy sellers are infamous for not being ready to put up the 2% PB after the buyer may need first put up the LC just because, being usually a small, obscure or generally even non-existent operation, such “sellers” typically lack the funds to afford the PB, thus leaving the purchaser with huge expense in banking prices for posting the LC.
Three. REFUSAL TO HAVE A TTM WITH Purchaser
Patrons could generally stipulate that there be a TTM (Table Prime Meeting), which is a gathering between the buyers (or their top representatives) and the seller, to be held at a mutually convenient time and place at which place the parties will personally meet, focus on the terms of the deal, and signal the contract. It’s not unusual to find some sellers strenuously resist or refuse that, giving all method of reasons and excuses for not wanting it.
Watch out although for such! Such posture usually arouses suspicion and serious doubt within the minds of skeptical consumers as to what could be the underlying motives of the seller for doing that, and the true character and authenticity of the vendor.
Four. Only NIGERIAN-Based mostly, NON-International SOURCES OF VERIFICATION
When a vendor gives a purchaser Solely Nigerian-based sources for verification of supposed crude allocation bona fides or cargo documents, with no credible international-based mostly, non-Nigerian sources or authorities supplied, that might be a serious warning sign of potential scam. Vacuum/Atmospheric Distillation Unit Verification by means of Nigerian sources (NNPC Abuja or Bonny, the Ministry of Petroleum, Abuja, and the like), are often seen by worldwide buyers with grave suspicion as notoriously unreliable and subject to forgery, and to manipulation and corruption of the information and supplies.
5. NO VERIFIABLE Proof OF Past Track Document.
Generally, unwillingness, reluctance, or inability on the a part of the vendor, to provide verifiable proof of previous monitor report and skill to perform, equivalent to credible proof that vendor had ever posted a 2% Efficiency Bond in any deal prior to now, or proof of any earlier offers confirmable from a credible foreign, non-Nigerian source, exhibiting the place the vendor has really shipped and efficiently delivered any crude oil to anybody, and the like. This could a minimum of sound a warning alarm bell.
6. REFUSAL To supply Seller’S PROFILE
When a Vendor is adamant against offering an announcement of the seller’s profile (for the seller’s firm as well as its principal officers). A one who claims that he (or she) actually has respectable crude allocation for which he wants a prospective buyer to pay some humongous sums to him within the a number of a whole lot of millions of dollars, however is reluctant to supply that prospective buyer some profile of himself for some idea of who the vendor is, arouses critical suspicion in a number of consumers’ mind. That is extra so right now, particularly, in the current climate of international crude oil buying and selling trade, which by all accounts has grow to be ubiquitously populated by fraudsters and scammers.
7. NO Evidence OF Capacity TO Submit Performance BOND
Usually, some sellers may shortly pledge to a buyer that they’ll put up a 2% Efficiency Bond as a technique of assuring the buyer that they will perform the contract, claiming that they’ll achieve this “as soon as the contract is signed,” but would adamantly bark at any proposal by buyer for them to point out the buyer, prematurely of the parties entering into the contract, some independently verifiable proof that the vendor really has the funds capability to be ready to satisfy this 2% PB pledge upon the agreement being signed. As a prospective buyer, watch out! That is steadily a sign that the seller simply lacks the funds, and that he is not going to have the ability to submit the PB if a contract were to be signed with this seller.
Eight. IINSISTENCE ON AN RWA
Typically, a Seller who says he will post a 2% Efficiency Bond insists that he’ll do so solely on the situation that the Purchaser, through the purchaser’s financial institution, will first send a request to the seller’s financial institution for an RWA (Readiness, Willingness, and Capability), reminiscent of an MT799, requesting formally for the vendor to position the mentioned PB. Be careful! On the very least, this is an indication that this seller might be not banking with a reputable monetary institution that is of the caliber that maintains the best or world-class moral banking and financial requirements, corresponding to one that is ranked among the top 25 worldwide banks. Among most of such high 25 international banks in the world, doing such RWA is considered “solicitation” in international banking protocols, and is considered in such circles as illegal and therefore something they will not have interaction in beneath any circumstances. Much more importantly, use of the RWA is viewed in such extremely moral circles as a tool employed by sellers who lack the funds required for the posting of the 2% Performance Bond to get consumers to “sign contract, sign contract,” only for these sellers to depend on financiers by displaying them the NEWLY-SIGNED SPA, which financiers will then impose unrealistic conditions that normally cannot be even touched by any respected top 25 worldwide banks.
9. MANIPULATION OF LETTER OF INTENT (LOI).
Individuals who claim to be crude Sellers (or characterize themselves as seller’s agent or mandate), however as but have really shown nothing tangible to exhibit that they are really authentic sellers, but persistently demand that prospective consumers challenge them an LOI (Letter of Intent) right upfront even before the buyer can find out who they are or anything about them. Be careful right here! Many a time, especially in a case involving a supposed seller who’s either a pretend vendor or doesn’t even have the supposed crude in hand, or, an unscrupulous aspiring seller’s agent who actually has not acquired a crude provider (vendor) but, buyers might problem an LOI solely to seek out out that there is no such thing as a vendor on the opposite finish. This occurs a lot in conditions the place you will have an hungry agent or facilitator who remains to be struggling to get a real supplier, and by getting this LOI from an unsuspecting purchaser, this facilitator can commit the buyer just for him then to start hustling for a vendor.
10. NAMING SHELL Display screen & LLOYD OF LONDON AS The vendor’S VERIFICATION Supply.
A vendor who names sources like the so-known as NNPC “Shell Display” or so-known as “Lloyd of London” as the means by which the buyer could do his verification for the ATS or POP. These entities are Pretend and non-existent, and do not confirm anything.
11. DeMAND FOR Cost Earlier than Q & Q.
A supposed vendor that asks you to pay any kind of cash upfront at any time earlier than the purchaser conducts the Q & Q. Why ought to you must pay for a product when you have not confirmed the product is even there, or its amount and high quality specification? Serious, credible or profitable sellers would not have any need to collect fees or funds upfront. As one analyst noticed, “Solely scammers want to see your cash first, as a result of their business is to collect these charges, not to sell oil.”
12. REFUSAL BY Vendor’S AGENT OR Seller To allow SOME Phone CONTACT WITH Purchaser
Sure Consumers would typically ask the agent of the seller that he arrange a three-approach telephone convention with the end-vendor so that the purchaser can at the very least establish a contact or verbal communication with the top-seller. This might be very important for a buyer because it could also be informative for him to have a verbal communication with the seller. A savvy purchaser might be ready to evaluate, simply from having this cellphone dialog and “feeling the pulse” of the seller, rather a lot about the seller and his familiarity with the enterprise, and a clearer image of whether the seller can really deliver what the buyer needs. A seller (or a vendor’s agent) who refuses such entry to a prospective purchaser, nonetheless, arouses suspicion in the mind of the buyer as to the agent’s motives and intentions, or the legitimacy of the seller.
Thirteen. REFUSAL To provide LOADING VESSEL Paperwork
A vendor who claims that the cargo has been cleared, but refuses to offer the cargo’s CPA (Charter Get together Agreement), ATL (Authority To Load), and Q88 vessel details, needs to be a trigger for suspicion as to whether or not such a loaded vessel ever truly exists.
14. Generally, UNWILLINGNESS BY Seller To offer Proof & TRANSPARENCY.
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