Identity Theft & Impersonation in Commodities

In commodity trading, trust is everything. But scammers know this, and one of their most effective tactics is impersonating real companies, executives, or brokers to win your confidence. Identity theft and impersonation scams are on the rise, costing brokers and buyers millions each year. Here are three common red flags, and how you can protect yourself.

1. Fake Corporate Emails & Domains

How it works:
Fraudsters register look-alike domains that closely resemble legitimate company websites (e.g., using “.co” instead of “.com” or adding a dash in the name). They then send professional-looking emails pretending to be procurement officers or sales directors of well-known firms.

Tips to avoid it:

  • Always check the sender’s domain carefully, one letter can make the difference.

  • Compare the domain with the official company website and LinkedIn page.

  • Use WHOIS or domain lookup tools to check when and where the domain was registered.

2. Impersonation of Senior Executives

How it works:
Scammers often pretend to be high-level executives (CEO, CFO, Head of Procurement) to pressure brokers or traders into quick deals. They use stolen LinkedIn photos, fake signatures, or WhatsApp profiles with company logos to appear legitimate.

Tips to avoid it:

  • Verify directly with the company via official phone numbers, not just email or WhatsApp.

  • Be suspicious of unsolicited approaches from top executives, it’s rare for CEOs to directly negotiate with brokers.

  • Cross-check names, job titles, and contact details against the company’s official website.

3. Stolen or Forged Company Documents

How it works:
Scammers often attach Certificates of Incorporation, Tax IDs, or Letterheads from real companies to prove authenticity. These are either stolen from public databases or crudely edited. The goal is to convince you that you’re dealing with the genuine company when in fact you’re not.

Tips to avoid it:

  • Don’t rely solely on documents, confirm with official registries or chambers of commerce.

  • Pay attention to formatting inconsistencies or outdated logos.

  • If in doubt, call the company directly using details from an official source, not those provided in the email.

Impersonation scams thrive on speed and misplaced trust. By slowing down, verifying identities through independent sources, and building a standard due diligence process, you can avoid falling victim to one of the most damaging scams in the commodity trade.

Red Flags Ai Ltd