Security Protocols, Advisories, & Common Gold Trading Scams Identified by Hedrick Gold

Operational Security and Transaction Protocol (POP & POF)

To ensure the integrity of all transactions, Hedrick Gold adheres to a rigorous vetting process necessitated by the high volume of fraudulent solicitations encountered in the region. Our procedures are intentionally designed to protect both the buyer and the seller from illicit activity.

Verification Requirements Given that 99% of unsolicited offers involve fraudulent intent, we require objective proof of product.

• The 2 kg–5 kg Verification Protocol: Sellers claiming to possess gold valued at millions of dollars must demonstrate the authenticity of their product by delivering 2 kg to 5 kg to the refinery for immediate testing and purchase.  This is the ONLY acceptable Proof of Product.  Proof of Product is REQUIRED before Hedrick Gold or any Client of Hedrick Gold will provide Proof of Funds.  Proof of Funds are ONLY provided in person and never sent electronically to unknown parties.

• Refinery Booking Integrity: We have previously incurred significant financial losses when sellers have abandoned scheduled refinery appointments, necessitating the current $200 booking requirement. This fee is fully reimbursed to the seller upon the completion of the purchase.

• Transaction Execution: Upon successful testing and payment for the initial 2 kg, we will immediately proceed to purchase the entire remaining quantity of gold presented.

Meeting Protocols

• Professional Environment: Multimillion-dollar transactions require a secure, professional setting; therefore, we do not conduct business meetings in public venues such as cafes, malls, or restaurants.

• Office Consultation: If a preliminary meeting is requested, it may be held at our buyer’s office located in an upscale district of Kampala.
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Security Protocol: Post-Test Custody of Gold
To ensure the security of the transaction and the integrity of the product, Hedrick Gold strictly adheres to the following protocols regarding gold movement:

• Refinery Custody: Any seller request to remove gold from the refinery following testing is classified as a high-risk indicator of fraudulent activity.

• Payment Standards: In legitimate "Test and Pay" transactions, payments are settled exclusively within the refinery. Under no circumstances will Hedrick Gold or its clients permit the removal of tested gold from the refinery prior to the finalization of payment.

• Risk Factors: There are two primary motives for a seller to request the premature removal of gold:

  • The seller intends to facilitate a robbery of the buyer.

  • The seller is collaborating with internal refinery personnel to facilitate a product swap.

• Legal Compliance: There is no legal requirement necessitating the removal of the commodity from the refinery to effectuate payment; all financial settlements can and should occur within the secured facility.
  
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*The Booking Fee Scam*
African fake gold sellers use this common scam: 

They lure buyers to a refinery (commonly Eurogold, Nuran, Azzurra, Niton, Nuron, Simba, Navas, GameStone, Alpha, or Quantum) and demand the buyer pay a booking fee of $100/kg — sometimes even before the gold arrives.  

If the buyer pays, the gold never shows up.  The fake seller and corrupt refinery staff split the forfeited booking fee.  

Even if the buyer waits until the gold arrives before booking, the seller invents an excuse to cancel the deal after the booking is paid for. The buyer still loses the booking fee, which is then shared between the fake seller and corrupt refinery personnel.   

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*The Crypto Handshake Scam*
Handshake Scam 1
A common scam involves a fake gold seller who insists on a "handshake" as Proof of Funds.

Here's how it works:
- The scammer offers to bring cash (often $1,000 or more) to the meeting.

- In exchange, the buyer must send an equal amount in USDT (or crypto) to the scammer’s wallet.

- When crypto is sent, the recipient can see the sender’s wallet balance, which the scammer claims proves the buyer has funds.

- *Important*: Any amount—even $1—provides the same information. There is no legitimate reason to send thousands.

The scammer then brings counterfeit cash. After the crypto handshake, the scammer makes an excuse to cancel the gold deal (the gold is usually fake or nonexistent). 

For a few dollars in fake bills, the scammer walks away with real cryptocurrency from the victim.

Recently, scammers have even demanded $10,000 handshakes.

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*The Jet Scam*
The counterparty directs the transaction toward a known aviation fraud scheme. Under this mechanism, the buyer is pressured to charter a private aircraft through a specific, pre-voted vendor designated by the seller, utilizing a non-refundable deposit. Once the deposit is secured, the inventory mysteriously becomes unavailable, allowing the fake seller and the collaborating charter service to misappropriate the deposited funds.

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Advisory: Risks of On-Site "Test and Pay" Transactions

Engaging in "test and pay" transactions at an unverified seller’s office presents significant legal and physical dangers.

• Licensing Requirements: Under local law, any individual conducting a gold purchase must hold a valid mineral dealer's license.

• Legal Consequences: Attempting such a transaction without the proper credentials renders the purchase illegal and subjects the buyer to immediate risk of arrest.

• Police Extortion Schemes: Fraudulent sellers frequently collude with local law enforcement to orchestrate "set-ups". In these scenarios, authorities may extort funds from the buyer and subsequently share a portion of the illicit proceeds with the seller.

• Financial Liability: The cost of securing release from detention following such an arrest is substantial, and can reach $60,000 USD, with costs varying significantly based on the demographic profile of the individual detained.

We strongly advise against conducting "test and pay" transactions at private offices to avoid these predatory practices.