| Test | Desk Action | Result on Fake Deal |
|---|---|---|
| Call warehouse number on receipt | Verify lot and client ID | “We store no nickel wire.” |
| Check LEI / VAT number | Confirm warehouse is a legal entity | ID belongs to an unrelated logistics firm |
| Request physical inspection | SGS site visit scheduled within 48 h | Borrower stalls or disappears |
| Chain-of-title review | Previous transfer endorsements | Blank—no prior holder listed |
| Original document couriered | Wet-ink signatures; anti-fraud watermark | “Only digital copy available” |
Nickel Wire SKR Scams: Fraudsters Applying for ABL Loans with Fake Receipts
Nickel Wire SKR Scams: Why a Forged Safe-Keeping Receipt Won’t Unlock Repo Funding
Nickel wire is a genuine specialty product used in batteries, sensors and aerospace widgets. What’s not genuine? The flood of Safe-Keeping Receipts (SKRs) tumbling into our inbox, each claiming to represent warehouse lots of “premium nickel wire” that borrowers want to pledge for repo loans. The numbers on the sheet may look plausible—but the document itself is pure fiction.
1. The Fake-Paper Epidemic
Almost every week a borrower emails an SKR—sometimes a glossy PDF, other times a grainy phone snap—asserting that coils of nickel wire sit safely in a bonded warehouse. When we call the warehouse, staff politely reply, “Never heard of that client, never stored nickel wire.” End of conversation. The issue isn’t over-inflated pricing; it’s that the stock never existed to begin with.
2. What an SKR Is—And Isn’t
- Not negotiable title. An SKR is merely a custodian’s acknowledgement it holds something. It is not a warehouse warrant and cannot transfer ownership on its own.
- Easily forged. Logos and signatures can be lifted from the web, slapped onto a template and printed in ten minutes.
- No chain of custody. Unlike a numbered warehouse receipt, an SKR rarely shows lot numbers, inbound truck references or outward release instructions.
3. How Real Warehouse Title Looks
Lenders accept only instruments that prove control of inventory:
- Original LME-listed or customs-bonded warehouse warrant.
- Unique receipt number traceable in the warehouse database.
- Lot identifiers cross-referenced with inspection certificates.
- Endorsable to the lender or marked “pledged to <lender name>”.
4. Underwriting Filters: 30-Minute Desk Check
Typical Outcomes for “Nickel Wire SKR” Submissions
5. Why the Scam Collapses Fast
Repo lending relies on the ability to seize and sell collateral overnight. One phone call to the warehouse or a single site visit exposes any phantom stock, leaving the borrower with no path forward. Because the fraud sits in the paperwork, not the price, even a conservative valuation won’t save the deal—no collateral, no credit.
6. Quick Red-Flag Checklist
- Document labeled “SKR” instead of “Warehouse Receipt” or “Warrant”.
- Warehouse address on Google Maps is an office park, not a bonded yard.
- Contact email is Gmail or Proton, not a corporate domain.
- Borrower resists independent inspection, citing “IP sensitivity”.
- Serial numbers on the SKR do not follow the warehouse’s published format.
Holding real, verifiable nickel—or any metal—in bonded storage?
Our repo desk funds USD 3 m – 250 m
when the title checks out.
Disclaimer: This article is for information only and does not constitute an offer to lend. Financely extends credit after full due diligence, KYC/AML checks and committee approval.
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