Too Good to Be True: The COOMIBAT Fake Gold Offer Scam Exposed

Based on a thorough analysis of the provided Soft Corporate Offer (SCO) from COOMIBAT and cross-referencing it with established indicators of gold fraud, this offer exhibits numerous and severe red flags that strongly suggest it is a scam. Below is a detailed breakdown.

Executive Summary

The offer from COOMIBAT is not credible. It presents terms that are commercially unrealistic, procedurally inconsistent with legitimate gold trading, and laden with hallmarks of advanced fee and documentary fraud schemes prevalent in East Africa. Engaging with this entity carries an extremely high risk of financial loss.

Detailed Analysis of Red Flags

1. Unrealistic Pricing (Critical Red Flag)

   • The Offer: The price is listed at $70,000 per kg gross ($65,000 net).
   • Market Reality: As of the current date, the international spot price of gold is approximately $105,000 per kilogram. No legitimate seller would offer a discount of over 30% below the global market rate. In mining regions, sellers seek to maximize profit and sell at prices very close to, or at a small discount from, the London fix. An offer this far below market price is a definitive sign of a scam designed to lure in greedy or inexperienced buyers.

2. Misapplication of Incoterms (CIF for Air Freight)

   • The Offer: Repeatedly uses “CIF” (Cost, Insurance, and Freight) for delivery to the buyer’s airport.
   • Industry Standard: As per ICC Incoterms® rules, CIF is strictly for sea freight only. The correct term for air freight is CIP (Carriage and Insurance Paid To). The misuse of “CIF” is a classic tactic used by scammers to appear knowledgeable while actually profiling buyers who lack international trade expertise. It creates ambiguity around who bears the cost and risk during transport.

3. Overly Complex and Unverifiable Procedures

   • The Offer: Details lengthy, multi-step procedures involving Escrow accounts in Hong Kong, Bank Instruments (BG/SBLC), and complex document flows (SCO, LOI, FCO, NCNDA, IMFPA, ICPO, SPA).
   • Industry Standard: Legitimate gold trade, especially for a first transaction, is straightforward. A buyer would inspect the gold at a licensed refinery or their own secure facility, assay it, and pay upon satisfaction. The convoluted process described is a common smokescreen to overwhelm the victim, give an illusion of legitimacy, and insert opportunities to request advance fees for “document processing,” “legal fees,” or “release fees” at various stages.

4. Lack of Verifiable Physical Presence

   • The Offer: The address is “Cheff – Wakabango I, Gr-Batalai, Shabunda, Sud-Kivu, Rd Congo.” This is a remote, conflict-affected area. The website (www.coomibat.com) is generic and lacks substantive information about mining operations, leadership, or legal licenses.
   • Due Diligence Indicator: Reputable mining cooperatives have a verifiable physical office in a commercial center and possess government-issued mining and export licenses. The use of a remote, inaccessible location and a basic website is a major red flag. A legitimate entity would welcome due diligence visits, which would be impossible here.

5. Request for Proof of Funds (POF) and Bank Instruments

   • The Offer: The “Bank Instrument Option” requires the buyer to first send a Proof of Funds (RWA/BCL via SWIFT) before the seller will proceed.
   • Scam Tactic: This is a primary method for scammers to:
     • Profile the Victim: Confirm the buyer has accessible funds.
     • Gain Leverage: Obtain a copy of a bank document to enhance the credibility of their scam to others or to use in further social engineering.
     • Set up Advance Fees: After receiving the POF, they will inevitably claim that a fee is needed to “activate” the process, “pay taxes,” or “release the collateral.” The gold does not exist.

6. “Gold in Transit” and Title Transfer Ambiguity

   • The Offer: The document discusses shipping and documents before full payment is made. Title passes only “after the Buyer pays the full amount.”
   • Due Diligence Indicator: Legitimate sellers do not ship high-value commodities like gold without full, cleared payment first. The concept of buying gold “in transit” is a pervasive scam. The clause is designed to create a false sense of security while pressuring the buyer to complete payments to receive goods that will never arrive.

7. Use of Pressure and Artificial Urgency

   • The Offer: “The Buyer must respond to this offer within five (5) banking days… otherwise this offer shall be considered withdrawn.”
   • Scam Tactic: Scammers use artificial deadlines to pressure victims into making hasty decisions without conducting proper due diligence. A legitimate seller would not withdraw a serious offer for a multi-million dollar deal after just five days.

8. Mention of “Collateral” and “CNF” Options

   • The Offer: These options involve the buyer paying upfront for insurance (1.5%) or export fees against gold held as “collateral.”
   • Scam Tactic: This is a direct advance fee scam. The buyer is asked to send money for various fees before anything happens. Once the fee is paid, the sellers will disappear or invent a new problem requiring another payment. The “collateral” does not exist.

Conclusion and Strong Recommendation

This COOMIBAT offer is a sophisticated fabrication designed to perpetrate fraud. The combination of a below-market price, misused trade terms, complex unverifiable procedures, and requests for financial documentation or advance fees aligns perfectly with known gold scam methodologies in East Africa.

Recommendation:

1. Cease all communication with COOMIBAT and the provided contacts immediately.
2. Do not send any form of Proof of Funds, bank documents, or upfront payments.
3. If you are serious about gold trading, only engage with entities that:
   • Quote prices based on the London Bullion Market Association (LBMA) fix.
   • Operate from verifiable, physical offices in stable jurisdictions (e.g., Kampala, Nairobi, Dar es Salaam) and hold valid, government-issued licenses.
   • Allow you to inspect and assay the gold at a licensed refinery before any payment is discussed.
   • Conduct business transparently without complex, multi-step procedures involving numerous intermediaries.

This offer presents a near-certain risk of significant financial loss. Extreme caution is advised.

Related pages

• Due Diligence and Indicators of Gold Fraud in East Africa: Focus on Uganda, Kenya, Tanzania, and the Democratic Republic of Congo (DRC)
  This article outlines numerous red flags indicating potential gold fraud in East Africa, particularly in Uganda, Kenya, Tanzania, and the DRC. Key scam indicators include offers of "gold in transit," misapplied CIF terms, requests for advance fees, unverified sellers lacking physical offices, and deals involving suspiciously low prices or large quantities. Other warning signs include sellers using fake documentation, name-dropping high-profile figures, or insisting on unusual procedures. The article emphasizes the importance of due diligence, legal consultation, and embassy verification to avoid falling victim to scams, urging buyers to prioritize transparency, proper licensing, and verified transactions when dealing in gold.