Foreign trade transaction trap: Businessman was defrauded of US$280,000

Mr. Singh is a businessman engaged in international trade in India. His business has always been running smoothly, but recently he fell into a fraud trap in foreign trade transactions.

Experience of being cheated:

One day, Mr. Singh received an inquiry from Taiwan through an international trade website. The other party claimed to be a large international logistics company and was interested in purchasing his products. They quickly reached a contract involving a $280,000 deal.

The other party provided a seemingly formal contract and payment voucher, and everything seemed normal. Mr. Singh shipped the goods without question and provided the tracking number for the goods.

However, when the goods arrived at their destination, Mr Singh did not receive payment. He tried contacting the buyer, but his phone calls were no longer answered and his emails were unresponsive. Eventually, he realized he might have been duped.

Scam analysis:

False identity: Fraudsters impersonate employees of international logistics companies to establish trust.

Forged documents: The other party provided false contracts and payment vouchers to make Mr. Singh believe that this was a legitimate transaction.

Disappearance: Once the goods were dispatched, the scammer disappeared and no longer had contact with Mr Singh.

How to prevent:

Verify buyers carefully: Before working with unknown buyers, double-check their identities and conduct background checks.

Be cautious about trusting documents: Do not easily trust documents and certificates from strangers and require verification of their authenticity.

Synchronous delivery of payment and goods: Try to arrange simultaneous delivery of payment and goods to reduce risks.

Multi-channel contact: Establish multi-channel contact with buyers to ensure effective communication during the transaction.

Be cautious with high-risk areas: Be especially careful and take precautions when dealing with buyers from high-risk areas.

This case highlights the need to be extra cautious in international trade to prevent becoming a victim of foreign trade transaction fraud. Stay tuned to our anti-fraud awareness series for more information on different types of scams and tips on how to prevent them.