About fraud

FRAUD USING FAX COPIES OF THE DOCUMENTS

This fraud is used by dishonest importers who plan to receive the goods and then refuse to honour the Letter of Credit. This is a relatively easy way for a fraudulent importer to avoid payment for the received goods. The buyer opens a Letter of Credit in favour of... More info >>>

SEND US YOUR CARGO, WE WILL EVEN PAY YOU A LITTLE! PART 1

A sophisticated method of stealing your cargo is by transferring partial prepayment. This type of fraud is used mostly by scammers located in developing countries, where a new supplier has very limited opportunities to have control over his cargo. To implement the scam the fraudsters create several bogus companies... More info >>>

SEND US YOUR CARGO, WE WILL EVEN PAY YOU A LITTLE! PART 2

Some days before the time of arrival the seller sees no money in his account. The buyer pleads to give him some more days to arrange the payment. The money is on the way from another account, his investors promised to transfer the payment; the transfer has been done... More info >>>

DIRECTOR’S PERSONAL LIABILITY FOR COMPANY’S DEBTS

From last year directors and other persons who control the company can be held personally responsible for the company’s debts. At the end of April 2009 Russia’s President Dmitry Medvedev signed a Law №73-Ф3 that changed the Bankruptcy Law in the country. The new Law stipulates the personal responsibility... More info >>>

CASH ON DELIVERY SCAM

This is a popular fraud used both in international and domestic trade. If it is done “according to the book”, this fraud is difficult to identify. A very common business situation: one company wants to buy a product and searches for an acceptable offer. In our example we are... More info >>>

MISLEADING REFERENCES CAN CAUSE SOLID LOSSES

Do not forget to check your new partners even if they have been referred to you by a company you fully trust. This scam can happen in almost any industry and both exporters and importers can lose money or product as a result. Let’s analyse a very common situation:... More info >>>

SMALL DELIVERIES, UNRECOVERABLE LOSSES

Sometimes it is easier to accept the loss than to insist on product change. This situation is common when small quantities of product are sold on EXW or FOT basis and the counterparties are located far from each other. For example, supplier A sold the product to buyer B.... More info >>>

PROTRACTED COMPENSATION SCAM

”Place more orders with us and we will deduct small amount from each shipment.” This situation is very common in any industry and can cause a great deal of trouble for the importers. Let’s have a look at the following example: Company A places an order with a new... More info >>>

BIG LOSSES ON AN OLD BUSINESS PARTNER

Both exporters and importers can face this type of problem and often the loss can be unrecoverable. Company A and B have been doing business with each other for a long time. Exporter A was regularly shipping cargos to buyer B and the companies were happy with the cooperation.... More info >>>

SAND OR SALT INSTEAD OF SUGAR

It looks like selling salt or sand instead of sugar is becoming a popular scam. This type of fraud has been popular both in the wholesale and retail trade with sugar. For example, some years ago an Estonian fraudster promised to supply sugar to several wholesale companies. The offered... More info >>>

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