About fraud

WHO OWNS AND RUNS THE COMPANY?

When you first start business with a new company it is important to understand who really owns and runs the business. The question of ownership is especially important when you have to grant credit to your business partner or make pre-payment. There are certain things about the ownership of the company... More info >>>

LETTER OF CREDIT AMENDMENT

A dishonest applicant can try to amend the L/C in an attempt to void the contract and avoid payment for the goods. According to UCP 500 and 600 an irrevocable L/C can neither be amended nor cancelled without the agreement of the issuing bank, the confirming bank, if any, and the... More info >>>

FAKE BANK REFERENCES

A dangerous type of fraud where scammers use their bank as a reference. This type of fraud is difficult to discover, as the references you obtain on the fraudsters are coming from a legitimate source – their bank. When you ask your potential partner for a reference, you can often receive... More info >>>

CARGO DELAYED IN TRANSIT

When the cargo is delayed in transit the importer can suffer considerable losses and blame the shipper for it. Delays in transit are very common in overseas shipping, especially when the cargo should be re-loaded from the ocean carrier to another vessel. The goods have to wait, sometimes several weeks,... More info >>>

SORRY, WE DID NOT RECEIVE YOUR INVOICE

This trick is often used to delay the payment. One of the most common explanations of late payment is that the buyer has never received the invoice. You supply the goods on open credit and once they are delivered you send the invoice to the buyer. When the due day... More info >>>

LOADING A CHEAP SUBSTITUTE

A dishonest exporter can ship a cheap substitute for the ordered product and still be paid by the issuing bank. One of the methods used by scammers to be paid under a L/C is to ship useless garbage instead of the ordered goods. International banking and trading community became aware of this... More info >>>

RISKS OF CONSIGNMENT SALES

When selling on consignment you should be aware of certain details of this type of deals. Selling on consignment is popular in some industries especially when the buyer does not want to tie up his money in extra stocks. This type of sales often happens in a “buyer’s market”, when... More info >>>

SELLING ON “FREIGHT COLLECT”

If for any reason the freight is not paid for by the consignee the shipper remains responsible for all expenses. When selling on “Freight Collect” the consignor is responsible for paying the freight charges. A common mistake of the shippers is that once the shipment has been dispatched he has no further... More info >>>

BROKEN SEAL

Delivery of any shipment should be completed with the seal intact. What do you do if the seal is broken? An intact seal is the main proof that your container or truck was not opened during transportation and the goods were not stolen or damaged. If the consignor loads the... More info >>>

VALUABLE PHONY COMPANY

Using this method scammers can turn a phony company into a profitable enterprise. To implement this scam fraudsters need solid financial support and patience. The story begins when the scammers buy an old but not very successful company. The company could operate in break-even or in minuses and the... More info >>>

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