The 10 Most Common Commodity and Instrument Scams

1 Overview

Fee hunters recycle the same set of lies across metals, soft commodities, energy cargos, and high-value bank paper. They exploit documentary blind spots, invent jargon, demand up-front charges, then disappear. Below are the ten ruses that surface most often in Financely’s incoming enquiries.

2 Quick Reference Table

#	Scam Label	Headline Hook	Typical Red Flags
1	PPP / Prime-Bank Trading	“100–300 % weekly without risk”	No regulated broker, secret “platform”, selfie KYC
2	SKR Monetisation	“Leverage an SKR at 80 % LTV”	Asset never moves, inflated valuation, advance fees
3	Bullet MTN Program	“One-day trade, 20 % profit”	Blocked funds letter, no ISIN, urgent slot deadline
4	Gold Doré Advance	“Cheaper than LBMA, pay export tax first”	Remote mine site, fake customs receipt, cash courier
5	Discount Diamonds	“70 % of Rapaport, Kimberley certified”	Paper-only parcels, non-existent parcel numbers
6	Petroleum Allocation	“Rotterdam FOB allocation, 40 % below Platts”	Forged tank dip, no refinery name, KTT copy-paste
7	ICUMSA 45 Sugar Spot	“300 k t ready Brazil, deep discount”	Fake SGS, insist on 10 % performance bond first
8	Copper Nano-Powder	“USD 2 000/g, 700 % yield PPP”	Bogus lab, WhatsApp only, four-figure per gram claim
9	SBLC/BG Leasing	“Lease a bank guarantee, monetise instantly”	Gmail mandate, no rated issuer, 2 % upfront
10	Historic Bond Redemption	“Pre-1945 Chinese bonds paid at par today”	No clearing system, payslip required in advance

3 Detailed Breakdown

1. PPP / Prime-Bank Trading

The promoter references “tranche” trades in Federal Reserve notes or SBLCs that yield triple-digit returns weekly. Regulators on four continents have stated no such tier-one trading desk exists. The math alone flags fraud: even market-making desks at bulge-bracket banks earn single-digit annual ROE.

2. SKR Monetisation

Victims are told a simple warehouse receipt equals collateral. Under real asset-based lending, banks require title transfer or a perfected pledge and advance 50–60 % of transparent spot value, not 80 % of a self-appraised fantasy price.

3. Bullet MTN Program

A one-day buy-sell of mid-term notes allegedly nets 10–20 % overnight. Documents supplied are PDFs with no Bloomberg-traceable ISINs. The “blocked funds” letter only freezes the victim’s balance while fees vanish.

4. Gold Doré Advance Scheme

Scammers ask for export tax, insurance, or refinery inspection fees before any bar leaves the mine. Reputable refiners pay the seller after assay, never before. The goods often never existed.

5. Discount Diamond Parcels

A Rapaport discount lures buyers; parcel numbers, GIA reports, or Kimberley certificates are forged. Face-to-face viewing is dodged with excuses about “bonded facilities” or “security clearances.”

6. Petroleum Allocation

Victims receive a doctored tank dip report and a purported refinery slot. Legit traders fix vessels and issue performance guarantees only after a rated bank L/C is in place, not after an “allocation fee.”

7. ICUMSA 45 Sugar Spot

Massive volumes at a deep discount supposedly sit in a Brazilian port. The seller insists on a 10 % performance bond, then reroutes communication via Telegram. SGS confirms the certificate number is fake.

8. Copper Nano-Powder Fantasy

Copper powder is quoted at USD 2 000 per gram—two magnitude above real market. Advance fees cover “insurance wraps” and “platform access.” No lab, trader, or bank will validate the valuation, making liquidation impossible.

9. SBLC/BG Leasing

The pitch: pay 2 % and a top bank will “issue then monetize” a standby letter of credit. Banks issue SBLCs for their own clients only; secondary leasing is a myth. The victim pays, the SBLC never arrives, and the issuing bank refutes involvement.

10. Historic Bond Redemption

Early-1900s Chinese or German bonds are promoted as redeemable today at face plus interest. No clearing system recognises them. Victims wire authentication fees to “specialist” lawyers; the bonds remain worthless.

4 Why These Scams Persist

• Information asymmetry – niche specs (doré fineness, ICUMSA rating, note ISINs) blur simple price checks.
• Document overload – forged inspection reports, blocked-fund letters, and swap contracts intimidate newcomers.
• Urgency pressure – “allocation expires tomorrow,” “tranche closes at noon,” forcing snap decisions.
• Fee layering – small upfront payments feel manageable, yet pile up before the victim notices the pattern.

5 Defensive Playbook

• Validate assets through SGS, Bureau Veritas, Intertek, Cotecna —no substitutes.
• Cross-check pricing on Bloomberg, LME, Platts, Rapaport, or USDA data.
• Refuse advance fees; real counterparties net costs at closing.
• Confirm bank instruments on SWIFT or with the issuing institution’s compliance desk.
• Engage regulated lawyers experienced in trade and structured finance, not referral “mandates.”

This brief highlights common fraud patterns. It is not legal or investment advice. Conduct independent due diligence and engage licensed professionals before signing any commodity or instrument contract.