The oil trade is a lucrative industry, but the risks of fraud are high. Some oil traders take advantage of the volatile price of gas and make outrageous claims to lure unsuspecting investors. Even though these investments can bring substantial profits, it’s never safe. Investing in the oil and gas industry is not completely risk-free. There are many frauds out there, and scam artists often use false information to attract unsuspecting investors.

The most common scam in the commodities business involves email hacking or fake email addresses. In this scheme, a hacker impersonates a third party to arrange payment for a contract. Using an email address that is slightly altered, they advise party A that their account details have changed. In most cases, the investor transfers the money to the wrong account. Similarly, some oil traders propose large contracts with unrealistic returns that turn out to be fakes.

Another common scam in the oil and gas industry involves email faking and email hacking. Hackers pose as legitimate parties to arrange payment. Using an email address that has been altered slightly, they pretend to be the other party. They then advise the other party that the payment account details have changed, and transfer the money to the wrong account. In such cases, the investment is a scam. Besides the risk of being cheated, there’s also no guarantee of receiving the money that’s promised.