In foreign trade business, it is crucial to avoid risks. Once you are fooled, you may face huge losses. Therefore, before doing foreign trade, it is very important to understand some common scams and prevent them in advance. This article will introduce some common foreign trade scams and provide some suggestions to help you avoid becoming a victim.
1. Insurance scam
In this scam, the scammer will claim to be a buyer and suggest that the exporting company purchase export credit insurance. Once the insurance is completed, the scammer will ask the exporting company to ship directly to another company, usually a company similar to the buyer claimed by the scammer. Then, the scammer will shirk the payment of the goods for various reasons, causing the exporting company to suffer heavy losses.
Preventive measures:
Be extra careful when working with new customers to ensure the strength and credibility of the other party.
Don’t easily believe requests for special settlement methods, such as D/P at sight, OA, etc.
For situations where insurance is required, you should consider it carefully and make sure that the insurance company is reliable.
2. Fake bill scam
In this scam, the scammer will pay the deposit in the form of a check or a forward bill and urge the exporter to ship the goods quickly. Then, when the bank fails to collect or finds that the bill is forged, the scammer has disappeared. This scam often takes advantage of the exporter’s eagerness to close a deal.
Preventive measures:
Be cautious about the sudden increase in order quantity and ensure the other party’s ability to pay.
Be vigilant about abnormal return order amounts and pay more attention to the other party’s behavior.
3. Testing fee fraud
In this scam, the scammer will claim to be a buyer and ask the seller to send samples to a designated testing agency for testing. Then, the scammer will disappear or shirk the order, causing the seller to lose the testing fee.
Preventive measures:
Be cautious about the sudden increase in order quantity and ensure the other party’s ability to pay.
Be alert to abnormal return amount and pay more attention to the other party’s behavior.
The ultimate trick: actively looking for customers
In addition to preventing scams, you can also avoid risks by actively looking for customers. Actively looking for customers can help screen high-quality customers and reduce transactions with bad customers, thereby reducing risks.
In summary, the key to avoiding scams in foreign trade transactions is to stay vigilant, carefully choose partners, and take effective preventive measures. Only in this way can you ensure the safety of your transactions and achieve success.