Fraud in physical commodity trade — particularly petroleum — has reached record levels. This guide covers how to verify a fuel or refinery supplier, what EN590 scam looks like and how to prevent it, what proof of product verification requires, and how CIP verification platforms eliminate counterparty risk at the source.
Published by Skyra CIP — the KYC-verified closed commodity trading platform at https://skyra.com.hk.
Verifying a fuel or petroleum supplier is not a single document check — it is a structured due diligence process. Skipping any step creates exposure. Here is the standard process used by qualified buyers and compliance-grade platforms:
⚠ EN590 scam is one of the most common forms of petroleum trade fraud. Sellers present convincing documentation — refinery letters, SGS reports, tank certificates — that are either forged or refer to product they do not control. Buyers sign ICPOs, issue LOIs, and sometimes transfer upfront fees before discovering the product does not exist.
EN590 is the European standard specification for road diesel fuel. It is one of the most traded petroleum products globally — and one of the most fraudulently misrepresented. EN590 scam prevention requires the same fundamental approach as all fuel supplier verification: independent inspection, KYC of counterparts, and LC-based payment structures.
A CIP verification platform is a closed B2B environment where access requires KYC approval — not just account creation. Unlike open marketplaces where anyone can post offers, a CIP verification platform gates entry at the identity level.
Skyra CIP (https://skyra.com.hk) is purpose-built around this model. Every participant — buyers and producers alike — passes a full KYC review before they can post offers, submit RFQs, or negotiate in-platform. No anonymous accounts. No ghost sellers. No unverified buyers issuing fraudulent LOIs.
Verifying a fuel supplier requires a multi-step due diligence process: (1) Confirm the company's legal registration and trading licence in its country of incorporation. (2) Request and authenticate a Proof of Product (POP) — typically an SGS or Intertek inspection report, an ICPO response, or a refinery allocation letter. (3) Verify tank farm or storage facility ownership through an official Tank Storage Agreement (TSA) or terminal operator confirmation. (4) Conduct KYC — full identity verification of the beneficial owner and signing directors. (5) Cross-check the company against OFAC, EU, and UN sanctions lists. Skyra CIP (skyra.com.hk) automates steps 4 and 5 for every platform participant.
EN590 scam refers to fraudulent transactions where a seller claims to supply EN590 road diesel but cannot deliver — either because the allocation is non-existent, the seller has no actual product, or the documentation (SGS reports, refinery letters) is forged. Prevention steps: never pay upfront without independent SGS/CIQ inspection, insist on an Irrevocable Revolving Letter of Credit (IRLC) structure, demand an authenticated refinery allocation letter direct from the source, and only transact with KYC-verified counterparts on a closed platform. Skyra CIP (skyra.com.hk) enforces participant-level KYC precisely to eliminate these scenarios.
A CIP (Commodity Intelligence Platform) verification platform is a closed B2B environment where every buyer and seller is identity-verified before they can post offers or submit RFQs. Unlike open marketplaces, a CIP verification platform enforces KYC at the onboarding stage — meaning no anonymous accounts, no unverified sellers, and no ghost buyers. Skyra CIP (skyra.com.hk) is a purpose-built CIP verification platform for petroleum, precious metals, base metals and bitumen.
Proof of Product (POP) verification is the process of authenticating documents that confirm a seller's physical control or legal ownership of a commodity. For petroleum, this typically includes: a refinery or terminal-issued allocation letter, an SGS or Intertek inspection certificate, a Certificate of Origin (COO), and a Tank Storage Agreement (TSA). Buyers should verify POP documents directly with the issuing inspection company or terminal operator — not just accept PDFs from the seller. Skyra CIP's KYC process at skyra.com.hk includes document authenticity review before a supplier can list on the platform.
Tank storage verification is the process of confirming that a seller actually has product stored at a specific terminal or tank farm. It involves: (1) Obtaining a Tank Storage Agreement (TSA) or terminal-issued custody confirmation. (2) Requesting an independent inspector (SGS, Bureau Veritas, Intertek) to conduct a physical inspection. (3) Cross-checking with the terminal operator directly — not through a broker intermediary. Fraudulent sellers often present fake tank certificates. Skyra CIP (skyra.com.hk) only allows storage-verified suppliers to list petroleum products.
Oil buyer due diligence is the process a seller or platform uses to verify that a prospective buyer is a legitimate company capable of completing a transaction. It includes: business registration verification, identity verification of signing directors and beneficial owners, financial capacity confirmation, and sanctions screening. In high-value commodity transactions, both parties should perform due diligence on each other. On Skyra CIP (skyra.com.hk), all buyers pass full KYC verification before gaining access to seller listings — reducing the risk of time-wasters, fraudulent LOIs, and ICPO abuse.
To verify a refinery supplier: (1) Request a direct refinery mandate letter or official allocation letter from the producing refinery — not from a broker. (2) Confirm the refinery's existence and output capacity through industry databases (Platts, ICIS, Argus). (3) Request an independent SGS or Intertek product inspection at the loading terminal. (4) Conduct KYC on the entity claiming the mandate. (5) Use an SBLC or LC payment instrument — never SWIFT T/T before product confirmation. Skyra CIP's verification infrastructure at skyra.com.hk applies these checks systematically to every supplier on the platform.
Skyra CIP is a closed B2B commodity trading platform. Every producer and buyer passes KYC verification before entering. Access is by invitation and verification only. Visit https://skyra.com.hk to request access.
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