CBiBank #315, today we will take you through a review of the common scams in foreign trade to help you avoid falling into traps. Let's start by paying attention to CBiBank.

I. Common Scams in International Trade

As foreign trade professionals, we all hope to secure a large number of orders and potential customers. However, it is equally important to learn to protect ourselves and prevent our companies from suffering unnecessary losses. Today, let's review some common scams in international trade for your reference.

1. Impersonating Agents

In international trade, agents are generally divided into two types: one acts as an agent without taking on the responsibility of payment; the other purchases independently and assumes the responsibility of payment. Some unscrupulous middlemen, during the process of independent purchasing, disguise themselves as agents of well-known buyers, misleading enterprises into believing that the contract is signed with a well-known buyer. By the time the truth is revealed, the agent has vanished.

2. Impersonating Well-Known Buyers

This type of fraud is becoming increasingly common. The fraudster directly poses as a buyer to place an order and often succeeds. The reason is that in international trade, contracts are mainly signed without the need for stamps, making it easy to forge. How does a fake company take delivery of the goods? Except for named bills of lading, other bills of lading can generally be transferred. By simply endorsing the bill of lading, the fake company can take delivery in its own name.

3. Colluding with Freight Forwarders to Release Goods Without Bills

Holding the bill of lading is a common way for enterprises to control the risk of non-payment. However, it is not uncommon for the goods to have been picked up by the buyer even though the bill of lading is still in the hands of the exporter.

How can goods be released without the bill of lading? The exporter may have received a bill of lading issued by a freight forwarder instead of the shipping company. Especially in FOB transactions, the freight forwarder is often designated by the buyer. Some small freight forwarders have business dealings with the buyer and may follow the buyer's instructions.

4. Exploiting Loopholes in Customs Policies

Some countries (regions) have special regulations for the return of goods. If the goods are rejected, the exporter must obtain a written statement of consent to return from the original buyer to remove the goods.

If the buyer does not cooperate or the ownership of the goods cannot be proven through other means, the goods will be auctioned by the customs after a certain period of time. Scammers take advantage of this special customs regulation to delay payment. As the auction date approaches, they demand to purchase the goods at a very low price.

5. Cyber Hacker Fraud

Some unscrupulous individuals take advantage of the fact that modern international trade relies on email communication and use modern information technology to commit fraud. Usually, after receiving the goods but before making payment, the foreign buyer receives an email instructing them to change the payment account (in fact, the email is manipulated by "cyber hackers" who invade the email systems of one or both parties, making the buyer believe that the exporter has requested a change in the payment route).