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Red Flags in Oil, Gold, PPE and Crypto Deals: How to Protect Yourself

By Bahram Madaen, Esq. ·

Large commodity and cryptocurrency trades move a lot of money between people who often meet online. That makes them a target for fraud. A paymaster helps, but it is not a substitute for caution. Here are warning signs that should make you slow down.

Warning signs

  • Pressure to pay upfront fees before any product, document or proof of funds is shown.
  • Documents that cannot be verified, such as certificates or bank letters that the issuing institution will not confirm directly.
  • Prices well below market for oil, gold, or equipment, with no clear explanation.
  • Refusal to identify the real buyer or seller, or an endless chain of intermediaries.
  • Requests to change bank details at the last minute, especially by email. Always confirm changes by phone using a number you already know.
  • Use of a lawyer's name without the lawyer's knowledge. Fraudsters sometimes name a real attorney as paymaster. Call the attorney directly to confirm.

How a paymaster reduces risk

A paymaster receives the money into a regulated trust account, checks the identity of every party, and pays out only according to signed instructions. Funds do not pass directly between strangers. If documents do not match or a party refuses identification, the transaction does not proceed.

Verify any attorney

You can check any California attorney's license status on the State Bar of California website by searching the attorney's name. Do this before you wire money to anyone who claims to be a lawyer.

Learn more about our crypto related, oil, gold and PPE paymaster services, or contact us before your next deal.

This article is general information, not legal advice for your situation. Reading it does not create an attorney client relationship.

Planning a transaction?

Fees quoted per transaction. Contact Bahram Madaen directly for a price.

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