Oil trade scams are widespread in the oil and gas industry. They often use a fake legal entity in one state to lure unsuspecting investors. Scammers may even send fake documents through the mail to get their victims to invest. Many of these fraudulent firms offer inflated prices and crude from third party countries. The best way to protect yourself from being taken advantage of is to avoid them. Below are some tips to avoid falling victim to oil trade scam companies.

Beware of websites that look official and legitimate. Scammers usually use fake government or law firms to set up fake websites. They may pretend to be shipping companies or tank terminals. Once they have your bank account information, they may contact you and ask for a large advance payment before delivering oil. This is the first sign of a scam. Beware of this. Don’t ever give anyone your bank account information, because they might be trying to take your money.

Don’t invest in oil trade scams. Many scam artists use highly publicized news items and volatility in gas prices to lure unsuspecting investors. It’s never a good idea to invest in oil and gas. There are many risks associated with investing in these commodities, but the best way to avoid scams is to look for legitimate opportunities. It’s a good idea to do your research before you make an investment, but be careful with these.