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Before you pay, ship or introduce: the Vanguard Verify guides
Three editions — Buyer, Supplier and Broker. 23 pages each: the warning signs, how to catch each one, the official sources, the contract terms and a printable checklist. Read online on any device.
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Field Brief: 7 warning signs with tests, evidence, stop lines and a results sheet✓✓
All 12 warning signs for your role, step by step—✓
The official sources to check, free, and how to use them—✓
Contract and LC terms to insist on—✓
What to do if something has gone wrong—✓
Ready-to-send questions for the other side—✓
The 16-point checklist (printable)—✓
Three editions
Buyer Edition
For buyers and importers: before you pay a new seller.
23 pages · checklist: Pre-payment checklist
Supplier Edition
For producers and exporters: before you ship or sign with a new buyer.
23 pages · checklist: Pre-shipment checklist
Broker Edition
For mandates and intermediaries: before you introduce anyone.
23 pages · checklist: Pre-introduction checklist
Free Field Brief: the 7 warning signs
The analyst's brief we use before any payment, signature or shipment: the 7 warning signs that sit behind most losses in commodity deals, why each one matters, how to test it yourself with free official sources, the evidence to demand and the line where you stop. With notes for suppliers and intermediaries, a worked example, a results sheet, a document request list and the free sources in one table. Enter your e-mail to open it — we also send you our scam alerts.
Vanguard Verify · Field Brief FB-01 · Free edition
The 7 warning signs in a commodity deal — and how to test each one before you pay, sign or ship
For buyers, suppliers and intermediaries · Prepared by the Vanguard Verify desk · Edition November 2026 · verify.vtcgw.com
How to use this brief
- Collect the documents in the request list at the end before you test anything.
- Run the seven tests in order. Record each result as Clear, Unclear or Failed in the results sheet.
- Decide with the rule under the results sheet, not with the pressure of the deal.
Most tests take minutes and use only free official sources. Keep a copy of every search result: it is your evidence if the deal goes wrong.
Contents
- Fees before independent inspection
- A price far below the market
- Payment to a party that is not the seller
- Bank instruments that cannot be authenticated
- An identity that is not on the official register
- A signatory without authority
- A new, free or look-alike digital identity
Then: notes for suppliers and intermediaries · a worked example · results sheet · document request list · free official sources.
01
Fees before independent inspection
CriticalTime: about 10 minutesWhat you seeStorage, insurance, "registration", "dip test" or "release" fees demanded before an inspector you appointed has seen the goods.
Why it mattersThis is the advance-fee pattern. Each payment unlocks the next demand, and the inspection that would prove the cargo exists stays one payment away.
Test it yourself
- Find the contract clause that obliges you to pay this fee, and at which stage. No clause, no payment.
- Appoint the inspection company yourself (for example SGS, Intertek, Bureau Veritas or Cotecna) and contact its local office through the details on its official website.
- If the seller sends an inspection report, ask that office to confirm the report number, the date and the cargo it covers.
Evidence to demandA signed contract with a clear cost-split clause; an inspection report issued in your company's name by the inspector you appointed.
Stop ifMoney is required before your inspector gets access, or the seller accepts only its own inspector.
02
A price far below the market
HighTime: about 10 minutesWhat you seeA "special allocation", "distressed cargo" or "direct refinery" price well under the published benchmark.
Why it mattersGenuine surplus cargo sells close to market. A deep discount is the bait that makes buyers skip their checks.
Test it yourself
- Find the benchmark: the World Bank's monthly Pink Sheet (worldbank.org/commodities) for sugar, edible oils, grains, crude oil and fertilisers; delayed exchange quotes (ICE, CME) for futures-traded products.
- Compare like with like: the same quality, the same Incoterm (FOB with FOB, CIF with CIF) and freight for your route.
- Calculate the gap in percent and keep the figure in your file.
Evidence to demandA written reason for the discount, on the seller company's letterhead and signed.
Stop ifMore than 20% below the benchmark with no reason you can verify. Between 10% and 20%: get the written reason before you go on.
03
Payment to a party that is not the seller
CriticalTime: about 5 minutesWhat you seeFunds are to go to a "fiduciary agent", "paymaster", sister company, offshore affiliate or a personal account.
Why it mattersIf the account holder is not the company on the contract, you hold no claim against the party you paid, and a credited transfer is very hard to recover.
Test it yourself
- Compare the beneficiary name on the invoice, letter by letter, with the seller on the contract and on the official register.
- Check that the bank is in the seller's own country; if not, ask why, in writing.
- If bank details change by e-mail, confirm by phone on a number you had before, never one given in the same message.
Evidence to demandConfirmation of the account holder's name sent from the seller's bank to your bank.
Stop ifThe beneficiary is anyone other than the contracting company, or the bank details change by e-mail before payment.
04
Bank instruments that cannot be authenticated
CriticalTime: your bank’s processing timeWhat you seeAn SBLC, bank guarantee, MT760 or proof-of-funds letter offered as a PDF or screenshot; "our bank deals only with us"; an MT799 presented as a guarantee.
Why it mattersA genuine MT760 travels only between banks over SWIFT; a copy sent to you by e-mail proves nothing. An MT799 is a free-format message and commits the bank to nothing.
Test it yourself
- Obtain the issuing bank's full name, its BIC (SWIFT code) and the instrument reference number.
- Check the BIC with the free BIC search on swift.com and take the bank's phone number from its official website, never from the letter.
- Ask your own bank to receive and authenticate the instrument through SWIFT.
Evidence to demandThe instrument received and authenticated by your bank, issued under ICC rules (UCP 600, ISP98 or URDG 758).
Stop ifThe instrument cannot be sent to your bank, or the issuing "bank" can only be reached through the seller.
05
An identity that is not on the official register
HighTime: about 15 minutesWhat you seeThe trading name differs from the registered name, the registration number is missing or does not match, or a new company tells a "decades in the business" story.
Why it mattersYou can only enforce a contract against a legal entity that exists under that exact name and number, and is not sanctioned.
Test it yourself
- Search the official registry of the country of incorporation by name and by number: for example Companies House (UK), the Secretary of State of the US state, the CNPJ search of Brazil's Receita Federal, the licensing authority in the UAE. opencorporates.com is a useful starting point for many countries.
- Note the status (active), the incorporation date, the registered address and the directors.
- Screen the company and its directors on the sanctions lists: OFAC (US), the UN Security Council list, the EU Sanctions Map and the UK sanctions list.
Evidence to demandCertificate of incorporation; a registry extract less than three months old; a trade licence that covers the product.
Stop ifThe name or number does not match, the company is dissolved or struck off, or there is any sanctions match.
06
A signatory without authority
HighTime: about 5 minutesWhat you seeThe person who signs is a "CEO", "export director" or "mandate" who does not appear on the company record.
Why it mattersA contract signed by someone without authority may not bind the company, and you are left with a claim against an individual.
Test it yourself
- Match the signatory's full name with the directors and officers on the same registry record.
- If the name is not there, require a notarised power of attorney or board resolution (apostilled where the countries require it).
- Match the passport copy to the name in the signature block and on the authority document.
Evidence to demandPassport copy of the signatory; power of attorney or board resolution naming the person and the transaction.
Stop ifNo authority document is provided before signing.
07
A new, free or look-alike digital identity
HighTime: about 10 minutesWhat you seeA domain registered weeks ago, a free mailbox for a "refinery", an address one character away from a real company, a website without a registration number.
Why it mattersImpersonating real producers and banks is the most common way into a fraudulent deal. The offer looks genuine because the name is.
Test it yourself
- Enter the domain at lookup.icann.org to see the date it was created and the registrar.
- Compare the e-mail domain with the company's official website, character by character (rn and m, 0 and o, .co and .com).
- Call the company's switchboard, using the number on its official website, and ask whether the person and the offer are theirs.
Evidence to demandAll correspondence from the official company domain; confirmation of the contact person by the company itself.
Stop ifThe company does not confirm the person or the offer, or refuses to write from its official domain.
Supplier or intermediary? Run the same seven tests on the other side, with these additions
If you are the supplier
- Have your own bank check any letter of credit or payment guarantee before you produce, load or ship.
- Treat a proof-of-funds letter like test 4: authenticated bank to bank, or it does not count.
- Do not release original shipping documents until payment or a confirmed LC is in place.
If you are an intermediary
- Run the tests on both ends before you introduce anyone: your name travels with the deal.
- Have your commission agreement signed before you share contacts or documents.
- Never forward a document you have not tested; say plainly what has and has not been checked.
Worked example
Illustrative only: a composite of common patterns, not a real case.
A buyer receives a sugar offer about 30% under the benchmark. The "seller" writes from a domain created five weeks earlier, asks for a storage fee before inspection, and names a "fiduciary agent" in a third country as the payee. The company name is on its registry, with a different signatory.
| Test | Finding | Result |
|---|---|---|
| 01 Fees | Storage fee before inspection; no contract clause | Failed |
| 02 Price | About 30% under the benchmark; no written reason | Failed |
| 03 Payee | Third-party "fiduciary agent" | Failed |
| 04 Bank paper | None offered | Clear |
| 05 Register | Company exists and is active; no sanctions match | Clear |
| 06 Signatory | Not a director; no power of attorney | Failed |
| 07 Identity | Domain five weeks old; the real company's website uses another domain | Failed |
Decision: Stop. Five tests failed, including tests 1 and 3. A real, registered company name does not make the offer real: tests 6 and 7 show the name is being used by someone else.
Results sheet
| # | Test | Clear | Unclear | Failed |
|---|---|---|---|---|
| 01 | Fees before independent inspection | ☐ | ☐ | ☐ |
| 02 | Price against the benchmark | ☐ | ☐ | ☐ |
| 03 | Beneficiary = contracting company | ☐ | ☐ | ☐ |
| 04 | Bank instrument authenticated | ☐ | ☐ | ☐ |
| 05 | Company on the official register, no sanctions match | ☐ | ☐ | ☐ |
| 06 | Signatory's authority | ☐ | ☐ | ☐ |
| 07 | Domain and e-mail identity | ☐ | ☐ | ☐ |
Decision rule
- Proceed with normal care: no test failed and at most one is unclear.
- Pause: one test failed, or two or more are unclear. Request the missing evidence; pay and sign nothing until it is in.
- Stop: two or more tests failed, or test 1, 3 or 4 failed on its own.
Document request list
A genuine counterparty can send all of this within 48 hours. Ask for it in one message.
- Certificate of incorporation and a registry extract less than three months old
- Trade licence covering the product
- Passport copy of the signatory, plus power of attorney or board resolution if the signatory is not a director
- Offer or draft contract on company letterhead, with Incoterm, quality specification, quantity, price and the cost-split clause
- Bank confirmation of the account holder's name, sent bank to bank
- Issuing bank name, BIC and reference number of any bank instrument offered
- Name of the inspection company and the point of inspection
- A contact person on the company's official e-mail domain and switchboard number
Free official sources used in this brief
| Commodity benchmarks | World Bank Pink Sheet (monthly) |
| Banks and SWIFT codes | swift.com — free BIC search |
| Company registers | The official registry of the country of incorporation; OpenCorporates as a starting point |
| Sanctions | OFAC (US) · UN Security Council list · EU Sanctions Map · UK sanctions list |
| Domains | ICANN Lookup |
| Inspection reports | The inspection company's local office, through its official website |
About the desk: bank trade-finance experience with standby and documentary letters of credit since 2009; credit-card fraud analysis; commodity trade since 2015. We never buy, sell or broker a deal we check, and we never contact your counterparty.
One sign is a reason to check. Two or more: stop until the checks are done. This brief is general guidance, not legal, financial or investment advice. Prepared by the Vanguard Verify desk — Vanguard Trade Capital Goods Wholesalers DWC-LLC, Dubai South, UAE · Registration No. 13236 · Licence No. 14282.
This brief covers 7 signs. The schemes do not stop at 7.
The seven signs above are the most common. They are not the only ones, and the people behind them change their methods every month: new fee names, new bank-document formats, new look-alike domains.
Not in this free brief
- 5 more warning signs for your role. In the Buyer Edition, for example: storage documents nobody can confirm, documents that contradict each other, bank details that change mid-deal, a request for your proof of funds before any proof of product, and pressure and secrecy.
- The 10-minute first check, step by step
- The official sources country by country, and how to read them
- The payment, LC and contract terms to insist on
- Ready-to-send questions for the other side
- The never-do list
- What to do if something has already gone wrong
- The printable 16-point checklist
New every month: Red Flag Watch
All-Access members receive the Red Flag Watch by e-mail each month: the new patterns reaching our desk, what they look like and how to test them. The yearly plan adds one free Deal Check every quarter.
Have a deal on the table right now? Run a free first check › · Already bought? Open your library ›
Written by the Vanguard Verify desk — Vanguard Trade Capital Goods Wholesalers DWC-LLC, Dubai South, UAE · Registration No. 13236 · Licence No. 14282. General guidance only; not legal, financial or investment advice.
Questions buyers ask before they pay
Short answers. The free field brief shows how to test each one step by step.
How do I know if an ICUMSA 45 sugar seller is real?
Look the company up yourself on the official company register of its country, by exact name and registration number. Check that the person signing is a registered director or holds a written authority. Pay only the company named in the contract, never a third party. Insist on inspection by an inspector you appoint before any payment. Our free field brief shows how to run each test.
How do I verify an SBLC or MT760 before I rely on it?
Ask your own bank to confirm it bank to bank with the issuing bank through SWIFT. Find the issuing bank's contact details on its own official website, never from the document you were sent. A PDF, screenshot or 'pre-advice' is not proof. If the other side refuses bank-to-bank confirmation, stop.
Should I pay a fee before inspection in a commodity deal?
No. Fees for 'storage', 'release', 'documents' or 'reservation' before an independent inspection you control are one of the most common warning signs. Real sellers let the buyer's appointed inspector see the goods before money moves.
Why is a commodity price far below market a warning sign?
Producers sell close to the published market price. An offer far below it usually means the goods, the paperwork or the seller do not exist as described. Compare the offer with published benchmark prices, such as the World Bank commodity price data, before you go further.
How do I check a supplier's company registration abroad?
Search the official company register of the supplier's country by exact name and registration number. Compare the address, directors and status with the documents you received. Global search sites such as OpenCorporates help you find the right register. A company that cannot be found, or whose details differ, is a stop sign.
The seller asks me to pay a different company. Is that normal?
No. Payment should go only to the company named as the seller in the contract, to an account in that company's name. A request to pay an 'agent', an 'affiliate' or a personal account is one of the 7 warning signs in our free brief.
How do I check that the person signing has the authority to sign?
Compare the signatory's name with the directors or authorised signatories on the official company register. If the person is not listed, ask for a board resolution or power of attorney and check it against the register. A signature without authority can make the contract worthless.
How do I check a diesel or EN590 tank storage receipt?
Contact the terminal operator directly, using contact details from the operator's own official website, and ask it to confirm the receipt, tank and quantity. Never use the phone numbers or e-mails printed on the document itself.
Who gives proof of funds and who gives proof of product?
The buyer gives proof of funds. The seller gives proof of product. A seller who demands the buyer's bank details or money before showing proof of product has the order reversed.
How can I check a trading company's website and e-mail address?
Look up the domain's registration date with the official ICANN lookup at lookup.icann.org. A domain created a few weeks ago, a free e-mail address, or a name that is one letter off from a known company are warning signs.
What should I ask for before paying a new commodity supplier?
Ask for the company registration extract, the signatory's authority, proof of product, an inspection by an inspector you appoint, and payment terms that pay only the contracting company. Our free field brief lists the 8 documents to request and the 7 warning signs to test.
Read the free field brief: the 7 warning signs and how to test each one →