Risks of international wire transfer
1) Wire transfer fraud
International wire transfer lacks third-party guarantee. In actual operation, since the payment is settled by remittance, the bank only provides services and does not provide credit guarantee. Whether the payment can be settled depends entirely on the credit of the buyer, so wire transfer belongs to commercial credit. Taking advantage of the time difference in the bank’s wire transfer process, the means of first remittance and then refund are used to commit fraud. This is a new means for criminals to defraud companies recently. Wire transfer is the riskiest of the three bills because it cannot leave any legal evidence and the two parties do not meet each other.
Therefore, the premise of using international wire transfer is to consider old customers first. If it is a new customer, the settlement method should be determined according to different places, different companies and transaction amounts. Generally, for new customers, it is recommended to use letters of credit for payment settlement.
2) Fax risk
If international wire transfer is used as the main settlement method of a company, then fax plays a very important role. The risk of fax should not be underestimated. If you ask the factory to arrange shipment as soon as the fax arrives, you may make a huge mistake, because you may end up losing both the goods and the money.
3) Wire transfer voucher fraud
When the amount of wire transfer is large, criminals will think of ways to exploit loopholes. There have always been cases of using fake wire transfer vouchers to defraud goods and money.