Many educated observers and revered analysts of the business have famous, for instance, that significantly in these arduous world financial instances, many crooks, scammers and fraudsters with truly no actual crude oil to promote, have trooped into the worldwide crude oil promoting enterprise in large numbers, seeing it as a fertile floor for them during which, a lot of them assume, they will “strike it massive” by scamming unsuspecting or gullible worldwide crude consumers, aided and made simpler for them by the Web and the simpler cowl of anonymity that it offers. Consequently, clearly, a well-established and settled FACT on this planet of worldwide crude oil shopping for and promoting enterprise at this time, is that that entire 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 instance, one other article by this author revealed by EzineArticles.com, titled “Purchase Nigeria Crude Oil With out Fraud: How Genuine Crude Oil Sellers Can Discover Prepared Patrons.”).
CLUES & SIGNS FOR SPOTTING POTENTIAL CROOKS AND SCAMMERS
Given the above-described distinct actuality at this time, are there methods in which you’ll be able to spot or detect crude “sellers” who will not be LEGITIMATE, or those that are almost certainly merely scammers and fraudsters with no actual crude allocation or crude to promote?
The next are a number of the methods and indicators:
1. THE “SIGN THE SPA,” “SIGN THE CONTRACT” GAME.
Usually, a Purchaser could get a vendor or his agent who aggressively pushes and presses that the customer ought to merely “simply signal the contract, simply signal the SPA,” and that every part else will work out for the customer after that. Usually, such vendor or the agent will promise just about heaven and earth, and decide to offering the customer just about any and every part in any respect the customer asks of him, PROVIDED that the customer simply indicators the contract. He’ll, the customer shall be promised, be instantly offered satisfactorily verifiable POP, or the two% Efficiency Bond, or get the vendor’s profile, his proof of previous observe file or previous efficiency within the promoting of crude oil or of his creditworthiness, and so forth., and so forth – however solely “after” the customer has signed the contract!
Be careful for such situation by sellers or sellers’ brokers! Many supposed sellers like that in all probability do not actually have any oil allocation or obtainable oil to promote. Nevertheless, for them, the trick is just to get some gullible purchaser to signal the SPA or Contract. After which as soon as that’s accomplished, such fraudsters will typically intentionally fault the settlement indirectly or the opposite, and make use of that as a ruse to demand a hefty penalty price of upwards of $100,000 or extra from the customer. The client will thus be pressured both to pay for a deal that by no means occurred, or else, to have the customer’s Letter of Credit score tied up, at maybe better price and expense to the customer, till maybe he succumbs and pays up the scammy vendor’s “penalty.”
2. A SELLER WHO WANTS YOU TO MOVE/PAY FIRST
A very good signal that you simply higher make use of warning, is when a vendor desires you to make the transfer first on the delicate FINANCIAL facets of the deal, corresponding to requiring that you simply (the customer) concern the Letter of Credit score first earlier than the vendor will then concern the customary 2% Efficiency Bond to activate that LC. A much less scam-prone manner could be for the customer (until it’s a well-known vendor that is concerned) to have the vendor transfer FIRST by issuing the PB from a good worldwide financial institution, as it will assure that the vendor has the monetary functionality to have the ability to put up the PB earlier than the customer goes by way of the trouble of placing up an LC, which might be fairly an costly proposition for any purchaser. Scammy sellers are infamous for not having the ability to put up the two% PB after the customer may need first put up the LC just because, being often a small, obscure or typically even non-existent operation, such “sellers” typically lack the funds to afford the PB, thus leaving the customer with large expense in banking prices for posting the LC.
Three. REFUSAL TO HAVE A TTM WITH BUYER
Patrons could typically stipulate that there be a TTM (Desk High Assembly), which is a gathering between the consumers (or their high representatives) and the vendor, to be held at a mutually handy time and place at which place the events will personally meet, focus on the phrases of the deal, and signal the contract. It’s not unusual to search out some sellers strenuously resist or refuse that, giving all method of causes and excuses for not wanting it.
Be careful although for such! Such posture typically arouses suspicion and critical doubt within the minds of skeptical consumers as to what is perhaps the underlying motives of the vendor for doing that, and the true character and authenticity of the vendor.
four. ONLY NIGERIAN-BASED, NON-FOREIGN SOURCES OF VERIFICATION
When a vendor offers a purchaser ONLY Nigerian-based sources for verification of supposed crude allocation bona fides or cargo paperwork, with no credible foreign-based, non-Nigerian sources or authorities offered, that might be a critical warning signal of potential rip-off. Verification by way of Nigerian sources (NNPC Abuja or Bonny, the Ministry of Petroleum, Abuja, and the like), are sometimes seen by worldwide consumers with grave suspicion as notoriously unreliable and topic to forgery, and to manipulation and corruption of the details and supplies.
5. NO VERIFIABLE EVIDENCE OF PAST TRACK RECORD.
Typically, unwillingness, reluctance, or incapability on the a part of the Vendor, to supply verifiable proof of previous observe file and talent to carry out, corresponding 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 reputable international, non-Nigerian supply, exhibiting the place the vendor has truly shipped and efficiently delivered any crude oil to anyone, and the like. This could not less than sound a warning alarm bell.
6. REFUSAL TO PROVIDE SELLER’S PROFILE
When a Vendor is adamant towards offering an announcement of the vendor’s profile (for the vendor’s firm in addition to its principal officers). An individual who claims that he (or she) actually has official crude allocation for which he desires a potential purchaser to pay some humongous sums to him within the a number of lots of of hundreds of thousands of , however is reluctant to supply that potential purchaser some profile of himself for some thought of who the Vendor is, arouses critical suspicion in a number of consumers’ thoughts. That is extra so at this time, particularly, within the current local weather of worldwide crude oil shopping for and promoting commerce, which by all accounts has develop into ubiquitously populated by fraudsters and scammers.
7. NO EVIDENCE OF ABILITY TO POST PERFORMANCE BOND
Usually, some sellers could rapidly pledge to a purchaser that they may submit a 2% Efficiency Bond as a method of assuring the customer that they will carry out the contract, claiming that they will accomplish that “as soon as the contract is signed,” however would adamantly bark at any proposal by purchaser for them to point out the customer, prematurely of the events getting into into the contract, some independently verifiable proof that the Vendor truly has the funds functionality to have the ability to fulfill this 2% PB pledge upon the settlement being signed. As a potential purchaser, be careful! That’s regularly a sign that the vendor merely lacks the funds, and that he won’t be able to submit the PB if a contract had been to be signed with this vendor.
eight. IINSISTENCE ON AN RWA
Generally, a Vendor who says he’ll submit a 2% Efficiency Bond insists that he’ll accomplish that solely on the situation that the Purchaser, by way of the customer’s financial institution, will first ship a request to the Vendor’s financial institution for an RWA (Readiness, Willingness, and Capability), corresponding to an MT799, requesting formally for the Vendor to position the stated PB. Be careful! On the very least, this is a sign that this vendor might be not banking with a good monetary establishment that’s of the caliber that maintains the very best or world-class moral banking and monetary requirements, corresponding to one that’s ranked among the many high 25 worldwide banks. Amongst most of such high 25 worldwide banks on this planet, doing such RWA is considered “solicitation” in worldwide banking protocols, and is seen in such circles as unlawful and therefore one thing they won’t have interaction in underneath any circumstances. Much more importantly, use of the RWA is seen in such extremely moral circles as a software employed by sellers who lack the funds required for the posting of the two% Efficiency Bond to get consumers to “signal contract, signal contract,” just for these sellers to depend on financiers by exhibiting them the NEWLY-SIGNED SPA, which financiers will then impose unrealistic circumstances that often can’t be even touched by any respected high 25 worldwide banks.
9. MANIPULATION OF LETTER OF INTENT (LOI).
Individuals who declare to be crude Sellers (or characterize themselves as vendor’s agent or mandate), however as but have actually proven nothing tangible to reveal that they’re actually official sellers, however persistently demand that potential consumers concern them an LOI (Letter of Intent) proper upfront even earlier than the customer can discover out who they’re or something about them. Be careful right here! Many a time, particularly in a case involving a supposed vendor who’s both a pretend vendor or doesn’t even have the supposed crude in hand, or, an unscrupulous aspiring vendor’s agent who truly has not acquired a crude provider (vendor) but, consumers could concern an LOI solely to search out out that there isn’t a vendor on the opposite finish. This occurs loads in conditions the place you’ve an hungry agent or facilitator who remains to be struggling to get an actual provider, and by getting this LOI from an unsuspecting purchaser, this facilitator can commit the customer just for him then to begin hustling for a vendor.
10. NAMING SHELL SCREEN & LLOYD OF LONDON AS THE SELLER’S VERIFICATION SOURCE.
A vendor who names sources just like the so-called NNPC “Shell Display” or so-called “Lloyd of London” because the means by which the customer could do his verification for the ATS or POP. These entities are FAKE and non-existent, and don’t confirm something.
11. DeMAND FOR PAYMENT BEFORE Q & Q.
A supposed vendor that asks you to pay any type of cash upfront at any time earlier than the customer conducts the Q & Q. Why ought to you must pay for a product when you haven’t confirmed the product is even there, or its amount and high quality specification? Severe, credible or profitable sellers would not have any want to gather charges or funds upfront. As one analyst noticed, “Solely scammers need to see your cash first, as a result of their enterprise is to gather these charges, to not promote oil.”
12. REFUSAL BY SELLER’S AGENT OR SELLER TO ALLOW SOME PHONE CONTACT WITH BUYER
Sure Patrons would typically ask the agent of the vendor that he prepare a Three-way telephone convention with the end-seller in order that the customer can not less than set up a contact or verbal communication with the end-seller. This might be crucial for a purchaser as a result of it could be informative for him to have a verbal communication with the vendor. A savvy purchaser will have the ability to assess, simply from having this telephone dialog and “feeling the heartbeat” of the vendor, loads in regards to the vendor and his familiarity with the enterprise, and a clearer image of whether or not the vendor can truly ship what the customer desires. A vendor (or a vendor’s agent) who refuses such entry to a potential purchaser, nonetheless, arouses suspicion within the thoughts of the customer as to the agent’s motives and intentions, or the legitimacy of the vendor.
13. REFUSAL TO PROVIDE LOADING VESSEL DOCUMENTS
A vendor who claims that the cargo has been cleared, however refuses to supply the cargo’s CPA (Constitution Get together Settlement), ATL (Authority To Load), and Q88 vessel particulars, ought to be a trigger for suspicion as as to whether such a loaded vessel ever truly exists.
14. GENERALLY, UNWILLINGNESS BY SELLER TO PROVIDE EVIDENCE & TRANSPARENCY.
Typically, unwillingness, reluctance, and incapability on the a part of the Vendor, to supply some routine sensible proof, or common indicators of secrecy and lack of transparency or authenticity – e.g., the purported “vendor’s” profile, his previous observe file of efficiency in oil gross sales, being forthcoming with details and data, exhibiting capacity and readiness to submit Efficiency Bond, prepared provision by vendor of verifiability, and issues like that.
15. EXESSIVE CLAIMS AND WORDS, BUT WITH NO SUPPORTING PROOF
Typically, purported “Sellers” who solely have interaction in massive “discuss, discuss, discuss,” and large claims merely by the use of the Web, however present little or no “exhibiting” of something – no PROOF or EVIDENCE in regards to the heaven and earth they declare!
FOR A FOLLOW UP
For a comply with up on a particular plan of motion by which, precisely, you possibly can spot scammy, crooked crude oil sellers of Nigeria and different crude, please see the educational info within the writer’s useful resource field under.