Fighting fraud in the oil products market: Basic principles and methods of counterparty verification

 

The oil products market, where huge sums of money and numerous intermediaries are active, unfortunately, attracts not only serious participants, but also fraudsters who are ready to use it for their own benefit. These fraudsters pretending to be buyers, sellers, oil storage facilities or logisticians break the law and cause serious damage to the credibility of the market as a whole.

One of the main tasks of every market participant is to determine if they have contacted a fraudster. Large corporations have huge security departments with substantial budgets to maintain them. However, even for small and medium-sized businesses, there are basic methods available for checking counterparties that can be effective at the initial stage of a transaction.

In this article, we will cover basic principles and methods of counterparty screening that, although simple, can help to quickly weed out obvious fraudsters. Whilst these methods are not guaranteed to be 100% effective and can sometimes be error prone, we will provide examples and techniques that have been proven to help weed out the majority of fraudsters in the initial stages of contacting contractors.

You canread the above article on combating fraudsters in the petroleum products marketon our REFRAT website at this link.


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