Fraudulent Commodity Offers

The global commodities market is vast, fast-moving, and highly competitive. Unfortunately, alongside genuine opportunities, it is also flooded with fraudulent offers, misleading procedures, and fabricated documentation. Whether you are a buyer, seller, or mandate, navigating this environment without caution can result in wasted time, reputational damage, or even financial loss.


This page highlights the key issues currently affecting the market, red flags to watch for, and why vigilance and working with verified partners are essential.

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The Flood of Fraudulent Offers

In recent years, buyers and intermediaries have reported an increasing number of offers for petroleum products, metals, and agricultural commodities that appear genuine at first glance but quickly unravel under scrutiny.


These fraudulent offers typically include:

  • Too-good-to-be-true prices that undercut genuine suppliers by impossible margins.
  • Fake SCOs and FCOs, often copied and circulated without any connection to the real seller.
  • Requests for upfront cash deposits, often disguised as tank fees, documentation charges, or “guarantee deposits.”
  • Misused refinery or corporate names to give a false sense of legitimacy.
  • Overly complex broker chains where no party can prove a direct link to the title holder.

On the surface, these offers may look polished and professional. But on closer inspection, they often lack the fundamentals: verifiable company registrations, traceable documentation, and compliance with Incoterms 2020.

Why This Matters for Buyers

For buyers, falling into one of these traps can mean:

  • Losing significant sums on deposits or fraudulent transactions.
  • Damaged reputation with financial institutions or genuine sellers.
  • Delays in securing real product, harming supply chains and client relationships.


Why This Matters for Sellers & Mandates


Sellers and their appointed mandates are not immune. Fraudulent activity damages trust across the industry:

  • Genuine sellers risk being overlooked because of market saturation with fake offers.
  • Mandates see their credibility undermined when fraudulent documents are circulated in their name.
  • Real opportunities are lost in the noise of illegitimate deals.

Staying Vigilant: Red Flags to Watch

  1. Unverifiable Refineries or Allocations – Always confirm the source.
  2. Unrealistic Payment Terms – Demands for cash deposits or fiduciary accounts are major red flags.
  3. Partial POP Manipulation – If documentation does not clearly identify the seller or refinery, be cautious.
  4. Lack of Corporate Transparency – Check trade licences, registrations, and official addresses.
  5. Too Many Layers – Long broker chains rarely lead to a real transaction.


Building a Safer Market Together


The reality is that fraud will continue to exist as long as commodities remain in high demand. The responsibility lies with every market participant to stay vigilant, conduct thorough due diligence, and engage only with credible, verifiable counterparties.


Working with trusted intermediaries helps mitigate risk.

At Auctora Trade Group, we emphasise verification, compliance, and structured procedures that protect all parties involved. While this page is not intended as a promotion, it is a reminder that your choice of partners matters as much as the product itself.

Conclusion

Fraudulent offers are not just an inconvenience—they actively undermine trust and efficiency in the global commodities market. By staying alert, recognising red flags, and choosing carefully who you engage with, you can protect your interests and build stronger, more reliable business relationships.

Trust, precision, and performance are not just ideals; they are safeguards in an unpredictable marketplace.