How to deal with domestic scammers? The first thought of many people is to verify the authenticity of the other party’s company. The idea is correct, but nowadays it is very easy and difficult to check the details of a company. The easy part is that information is well developed, and many places, especially big cities, have open government affairs, and industrial and commercial registrations can be checked for free or for a small fee. The difficult part is that there are fewer and fewer “purely fake” scammers, and more scam companies have complete industrial and commercial information, which is grand and plausible, and some are real and some are fake. Most of them operate in the gray area, taking advantage of loopholes in the law, national administrative management, and departmental cooperation. Therefore, many times even if you verify that there is such a company, it is not of much reference value.
There are some basic judgment methods. First, look at the company name. A formal company name is like this:
City name + Enterprise name + Industry category + Enterprise nature
Shanghai/Dongyun/Import and Export/Co., Ltd.
or Ningbo/Jiuxing/Aluminum Products/Factory
or Hong Kong/Hongshenghang/International Trade/Co., Ltd.
In mainland China, it is generally not allowed to name a company with a country name or a name like “Global”.
However, it is allowed in Hong Kong or some foreign regions. Therefore, when you see a name like “Global International Venture Capital Company”, you can basically conclude that it is not a company registered in China. It is more likely to be a “paper company” registered overseas, and then register an office in China. It is not to say that such companies are scammers – in fact, there are quite a few very suspicious companies with only one office and three or two people, but they actually have a lot of money in their hands looking for investment. Therefore, it is difficult to investigate the fraudulent companies. Of course, if possible, it is not bad to get some information from the side, but it is not the key.
How to deal with it when you are not sure? Just grasp three simple principles:
1. It is better to believe it. Although there is no certainty, it is an opportunity after all. Take it seriously, be decent and considerate, and make money in harmony.
2. Don’t show the rabbit before you see the eagle. Being enthusiastic is one thing, but you must not be vague when it comes to money. Before you see the real money, hold your pockets tight.
3. Follow the rules for those whose details you don’t know. When doing business, you should be “flexible” only to familiar customers, and it is better to be quiet than to move for the first time. As for bribes and kickbacks, they are things that are not allowed to be seen in the light, and you dare not say anything when you suffer losses in the future.
In addition, if you are asked to “negotiate the transaction in person” at the other party’s location, don’t easily agree. According to industry habits, customers who really want to purchase in bulk should go to the manufacturer in person to see the equipment scale and production capacity, etc. You should be three points vigilant against things that go against common sense. You can confirm the transaction details over the phone or fax, mail samples to see the goods, etc., to minimize the need for “meeting”. If the other party insists on meeting and has a reasonable reason, then consider setting off to visit. When visiting, there must be more than two people. The meeting place should be the other party’s company rather than a hotel or restaurant, and try to avoid meal times. When meeting, make more phone calls to contact the outside world, explain your location in front of the other party, and take precautions against possible scams. Before knowing the details, refuse the other party’s invitation to entertainment venues, etc.
Avoiding greed, impatience, and vanity is the most basic and eternal way to prevent fraud in the business world.
Understanding the principles of foreign trade can enable you to operate flexibly without departing from the original; accumulating experience in the world can help you see the flowers in the fog without being confused.