The mechanism
Genuine escrow and genuine inspection can be agreed by both sides. The test is not who first named the firm. It is whether the intermediary can be verified independently, under neutral, enforceable terms, with a confirmed bank recipient. Fake versions look formal and stay under the seller's control.
ICC's Financial Investigation Bureau has published a case in which a gold seller produced purity documents, then left when the buyer insisted on a second test at the buyer's chosen venue. After the buyer accepted the original results and paid a large cash advance, the bars were later found to be copper and zinc. A test the seller will not allow to be repeated independently is not a test. A forged inspection report is the paper version of the same tactic.
Who benefits, and who is targeted
The party that takes the advance once "escrow" or "inspection" has been declared complete benefits. The targets are buyers who want a comfort procedure and do not check who controls it.
The independent check
Confirm the inspection firm or escrow agent through a public directory and a published number, and read the mandate. Parties can agree a named intermediary. Walk away if the seller refuses an independent check, blocks confirmation of the terms or the bank recipient, or keeps control of the process. The same pattern often follows a demand for an export or release fee. See the cluster overview.
