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Compliance Nov 08, 2026 9 min read
How to Avoid Fuel Procurement Fraud: POP, SGS, Dip Test and Payment Red Flags
Red flags to watch out for when procuring bulk diesel and marine fuels, and how to verify legitimate suppliers.
Capt. John Smith
Technical Director
The bulk fuel market is fraught with broker chains and fraudulent offers. Industrial buyers must implement strict due diligence protocols before issuing purchase orders.
Red Flags & Verification
- Advance Fees: Legitimate suppliers do not ask for upfront registration fees or export license fees.
- Proof of Product (POP): Always verify POP via bank-to-bank communication (SWIFT MT199/799) or verifiable SGS reports.
- Dip Test Authorization (DTA): Ensure DTA is provided unconditionally once financial capability is proven.