Oil or Gas Fraud scammers are cooking with...well you know!

The Oil and Gas Fraud Scam

Though it’s currently a little known scam, gas fraud is on the rise. If you ever receive unsolicited sales calls regarding an oil drilling investment, tread with caution. Established oil drilling firms have no need to solicit new investors; they have a specific protocol in place that prospective investors must follow in order to get in on the deal. On the other hand, gas fraud operations need to solicit investors because they don’t have an effective business model in place (because they’re a gas fraud operation, not a business!)

A common tactic gas fraud operations use to trick their potential “investors” into dumping their hard-earned cash into this fruitless gas fraud scheme is the hard-sell method. The salesmen behind the gas fraud will insist that it’s a limited time offer or even offer to cut you a deal under the table if you agree to send the cash immediately.

Identifying a Gas Fraud Operation

But, be wary of these tricks; it’s just the pressure of the hard-sell tactic. The price to opt in will be the same tomorrow as it is today. If they were in fact running a promotional price, why would such a reputable company give you all of 10-minutes to decide whether you’d like to invest or not? By putting pressure on you to make a decision immediately they know you’ll be more likely to jump into this investment opportunity (which is indeed a gas fraud) in order to minimize the startup investment.

Do your due diligence to make sure you aren’t being taken in an oil or gas fraud. Take your time in asking the tough questions. Ask where the company’s physical office is located and for the address of the oil drilling site. Ask about the legalities of business: Is their company registered with the SEC? Where can you see legal documentation of the current registration? How was the drilling site acquired? Will there be any taxes involved and if so, who pays?

You can be sure that it’s a gas fraud operation if the salesperson hangs up on you or tightens up about the questions. Gas fraud operators become uncomfortable when asked these questions because they can’t answer them honestly! If you’re given answers, don’t immediately assume that it isn’t a gas fraud. Ask for the proper information so you can call up officials (preferably within the government) and confirm that they are indeed legitimate.