About fraud
A DEAL WITH MANY MISTAKES. PART 3
Analysing this case we can see that both the supplier and the buyer made serious mistakes that led to a conflict between the companies and money lost for the importer. What were these mistakes? Company B had experience in purchasing tyres from their existing supplier. Due to this fact,... More info >>>
A DEAL WITH MANY MISTAKES. PART 2
Some days later Company A finished preparing the claim and sent it to the exporter. The situation was described in detail, the photos were enclosed and the buyer was asking for compensation. Company B acknowledged the receipt of the claim and promised to investigate the case. After some days,... More info >>>
A DEAL WITH MANY MISTAKES. PART 1
Several mistakes made by the importer from the very beginning of the deal led to serious financial losses in the end. Below is a short guide on what not to do when importing. Recently we have seen a few similar cases and understood that companies from different branches make... More info >>>
WHY COMPANIES ARE CHEATED. PART 2
It is not a secret that many companies do not perform a thorough check of their potential business partners before signing the contract. Most of the firms are satisfied with the information they receive from the potential supplier or buyer or with the information stated on the company’s website... More info >>>
WHY COMPANIES ARE CHEATED. PART 1
Many companies are so easily tricked by fraudsters and lost money and goods that sometimes we cannot believe that it really happened. We will try to analyse how it was possible. The main reason for losing money is that companies do not suspect that they could be cheated by... More info >>>
FAKE SUPPLIERS WITH A “BORROWED” FACTORY. PART 2
Once the paperwork is finished the companies come to the actual delivery. The buyer should transfer the prepayment to the seller’s account (the account that belongs to Company C) and then wait for the goods to arrive. However, nothing happens. The delivery is delayed and after some time the... More info >>>
FAKE SUPPLIERS WITH A “BORROWED” FACTORY. PART 1
Using this simple trick, fraudsters can make the buyer believe that he is dealing with a serious company. Once the contracts are signed and prepayment transferred the fraudsters disappear. This method is often used by scammers to win the buyer’s trust, get them to sign the contract and then disappear... More info >>>
CHOOSE A PARTNER WHO IS YOUR EQUAL. PART 2
Another incident happened with a different trading company that placed an order with an Asian supplier. It was the first time these companies were doing business together. The order was just for one container of the product and for a company of that size was a minor order. The... More info >>>
CHOOSE A PARTNER WHO IS YOUR EQUAL. PART 1
Both importers and exporters can get into trouble if their counterparty is either smaller or larger than the company itself. We have received several complains from both suppliers and buyers claiming that their counterparties did not pay the proper attention to the contracts and in some cases even cancelled them.... More info >>>
NEW PENALTIES FOR BRIBERY IN RUSSIA
The lower house of the Russian parliament increased the penalties for bribery and made a classification of the bribes. The Russian Duma classified the bribes in four groups: Ordinary bribe (amount lower than 25.000 Rub / appr. 620 Euros). The penalty for receiving such a bribe will be a fine between... More info >>>
FRAUDULENT SHIPMENTS UNDER FAKE B/Ls
Fake but very convincing shipping documents were issued for cargoes of garments and footwear that had never taken place. The ICC International Maritime Bureau (IMB) has identified a number of fraudulent shipments originating in India, all appearing on otherwise convincing shipping documents. IMB has identified the misuse of NVOCC Bills of... More info >>>
If you want to make easy money by selling vaccine to West Africa, just go ahead and answer the email below. Very soon you will be several thousand dollars short. Re: Supplier needed urgently. Dear Sir, I seek your help, attention and genuine co-operation to our mutual benefits and I believe that... More info >>>
Now comes the most unpleasant part of the story. Three weeks later buyer C informed his partner that due to serious financial problems the company has to be reorganised. The old management is leaving the company and new directors would be appointed. As a result the company would not... More info >>>
One of the most unpleasant parts in middlemen’s business is that they have to rely on the words of their suppliers and buyers and based on this information communicate to their counterparties. Often this system fails. When two middlemen are trying to facilitate a deal between the supplier and... More info >>>
WHAT IS AN EXPRESS BILL OF LADING?
By understanding how an express B/L works importers and exporters can save time and avoid unnecessary costs. Express bill of lading is a form of transport documents issued by the ocean carrier or forwarding company. When working with this document the shipping line can issue only a copy of... More info >>>
DELAY WITH THE PAYMENT MAY BE EXPENSIVE. PART 2
Worse scenario of the above: the seller returns or sells the cargo but does not inform the buyer about it. The buyer pays the remaining amount and only after it the exporter informs him that the goods are on the way back (or sold to another company) because of... More info >>>
DELAY WITH THE PAYMENT MAY BE EXPENSIVE. PART 1
Many companies think if they have transferred partial pre-payment and the goods have been shipped the remaining amount can be paid later than it was agreed and without any consequences. This is often not true. This situation is very common in international business, especially when the goods are imported... More info >>>
DIFFERENCE BETWEEN A TRANSFERABLE AND BACK-TO-BACK L/C. PART 2
Banks are usually very selective to whom they can offer a BBLC. The client must have a good reputation with the bank and have long faultless experience in issuing export documents and working with letters of credit. Back-to-back L/Cs are not covered under UCP and there are no ICC rules... More info >>>
DIFFERENCE BETWEEN A TRANSFERABLE AND BACK-TO-BACK L/C. PART 1
A transferable letter of credit is often used in international trade while a back-to-back letter of credit (BBLC) is less common. What is the difference between these two instruments? Transferable and back-to-back letters of credit are usually used by trading companies or middlemen who are trying to facilitate a... More info >>>
One of the most powerful baits used by fraudsters to attract customers is a very competitive price. But such a “sale” should be somehow explained. Let’s see the possible explanations. When you receive a very attractive offer from an unknown company your first reaction will be very positive. Of... More info >>>
