Part 4: The Scam Setup – How It Works

In the EN590 trading world, scams often follow a calculated pattern. By understanding this structure, you can better protect yourself and your clients. Let’s break down how these setups typically operate.

Step 1: Bait the Buyer

Scammers start by presenting attractive offers—usually below market rates. They promise fast delivery, direct refinery deals, and documentation that looks real. These offers often include buzzwords like CIF, tank-to-vessel, SGS, and refinery allocations.

Step 2: Fabricate Urgency and Legitimacy

Once they catch a buyer’s interest, scammers demand documents quickly. They often ask for an ICPO, even before the buyer has verified anything. The goal is to create pressure and a sense of exclusivity.

For example, they may claim, “Only three slots left—first ICPO gets the deal.” Meanwhile, they avoid real vetting or third-party verification. As a result, the buyer is rushed into submission mode, skipping due diligence.

Step 3: Layer Fake Intermediaries

Multiple layers of middlemen appear—each claiming to represent a refinery, seller mandate, or end buyer. This makes tracing responsibility almost impossible. Scammers will use fake names, email domains, and even cloned websites to back their claims.

Step 4: Submit Forged Documents

The buyer receives documents that look official. These may include:

• ICPO templates pre-filled with unrealistic pricing
• POP (Proof of Product) showing fake tank numbers or fabricated SGS reports
• SPA (Sales Purchase Agreement) demanding advance payments or security deposits

To make these documents appear real, scammers use logos, watermarks, and forged signatures. In some cases, they include SGS stamps or port data that appear legitimate—but aren’t.

Step 5: Target the Deposit or Instrument

Eventually, the scammer’s true goal emerges: to extract money or banking details. They may request:

• Advance deposit via TT
• Security guarantee before contract execution
• Irrevocable SBLC issuance with unrealistic terms

If the buyer complies, the scammer disappears, stalls, or blames port issues to delay. In some cases, they use the fake paperwork to scam multiple buyers at once.

Red Flags to Watch

• Pressure to issue ICPO before seeing any verification
• No clear refinery or mandate info—only “via via” chains
• Demands for TT deposits before SGS or POP is verified
• Refusal to conduct video meetings or verify tank numbers

How to Protect Yourself

Always verify documentation through trusted third parties. Request SGS numbers directly from the inspection company. Ask for tank location and verify it with the port. Use conditional language in ICPO and SPA that allows exit if documents are fake.

Most importantly, work with brokers or consultants who perform due diligence. A well-informed middleman can save you from a six-figure mistake.

Conclusion

Scammers use structure, speed, and superficial legitimacy to trap their targets. By knowing how the setup works, you can slow down the process, ask the right questions, and avoid costly errors. Protect your transactions—and your reputation—by staying alert.