How to prevent being cheated in foreign trade?

Case 1: A foreign company was defrauded by a Chinese company of more than 60,000 yuan in 2017, and the company canceled and ran away after payment. Due to cross-border issues and irregular contract signing, foreign buyers are unable to defend their rights. 

Cases 2: At the beginning of February 2021, Shaoxing, Zhejiang, cracked a major case involving foreign scammers defrauding payment for goods, involving an amount of more than 30 million yuan. More than 30 companies were deceived, but they could not recover their losses.

Among the many multinational import and export businesses with such high risks, how should we avoid risks? How can we find a suitable and safe way to import products?

At first, we need to know how do scammers obtain funds and payments through exchanges.

This should be discussed in two cases, Third-party scammers and party scammers.

Let’s dive right in now, and you can click on the question that interest you, 

Third-party scammers

How to prevent being cheated in foreign trade?

Dont open the strange format attachment!!!

They usually obtain your email account and password through some hacking methods, or some cheating links.

Such as below:
How to Prevent Being Cheated in Foreign Trade
How to Prevent Being Cheated in Foreign Trade

These unknown links with strange format attachments normally are cheating emails. Once you click it or open it, the virus will collect the information in your system. Don’t open the strange format attachment from strange email address!!!

If you have the ability to find out the real contact way of scammers from signature, just call the police. Usually, the content is just a shell company, or even fictitious company information, just to appear more formal to deceive people’s trust.

Even normal format of the attachment is unsafe

Such as below email from Korea:
How to Prevent Being Cheated in Foreign Trade
How to Prevent Being Cheated in Foreign Trade
fraud email-2

ZIP and Excel format also can be a cheating email to steal your account information.

What is the next step when they got your email password?

After those third-party scammers obtain your email password, they will not do anything immediately, but will observe your mailbox to see if there is an order that is about to be paid recently.

Once get the target, they will start a new email address, which is very similar to your supplier/buyer. Just like below. You might not find the differences after sending so many emails to your supplier.

similar address

Then intercept the e-mail with the bank information sent to you by the supplier, and send you their bank account information to get the payment. Their bank accounts are usually opened in places with loose financial regulations such as the Cayman Islands or Hong Kong where funds can flow in and out freely.

Once the funds are obtained, the money in the account will be immediately transferred away, and the source cannot be traced.

Once our payment is defrauded, it will be extremely difficult to recover our losses. So please pay attention to your mailbox when you want to send money.

Party scammers

Defrauding prepayment

Most of the import and export orders will charge a certain amount of advance payment as a margin, and the scammers are targeting this part of the rules, and negotiate with the customer to place the order at a low price, and then charge a higher advance payment, and finally after the payment is received. Will not reply any message.

How to prevent this kind of scammers?

Perhaps the price is an important factor in your search for suppliers, but remember that when a supplier quotes you a price that is much lower than other peers, don’t be surprised, please first verify the legality of the company and the product’s quality and reputation.

Or you can find a third-party company to inspect the factory and send you a report of it.

Defrauding goods

Some buyers, when negotiating prices, will emphasize the size of their orders and the strength of the company, especially in an increasingly competitive China. With such a large order size, many factories will try their best to cooperate. Then they will choose the payment method of OA 90 days to get the order.

You can refer to the following words:

How to prevent being cheated in foreign trade
How to prevent being cheated in foreign trade

You will never get any reply from the buyer after the arrival of the goods. The case we mentioned in the beginning, is this kind of scammer. More than 30 companies lost more than 30 million Yuan.

In fact, not all buyers who use OA payment methods are scammers. Large buyers such as Wal-Mart will use this method. Because of its international reputation, there is usually no problem. What I want to emphasize is that if the customer does not have a certain reputation and is a completely unfamiliar customer, we must use the cash on delivery or OA method carefully.

Some other scammers

Pretend to be an official shipping company

The logo and the name shown are DHL, but you can easily tell that this is a fake account by email address.

Of course, its attachment is also a virus that steals the password of the mailbox.

How to prevent being cheated in foreign trade

Your mailbox is almost full

It’s a very common scam. The usual email providers don’t frequently send emails to remind you of such things, and they can be distinguished by judging their email addresses.
How to prevent being cheated in foreign trade

Fake B/L & T/T invoice

This type of scammer will even forge an email you sent before. If your daily work is very busy and you have to send a lot of emails every day, you will most likely believe it.

How to prevent being cheated in foreign trade

Please check the attached PO

How to prevent being cheated in foreign trade

In the End

As a sourcing and trading agent in China, we receive a lot of spam emails every day, and many factories complain to us about their tragic stories. In the last 5 years, we encountered many factories and were cheated by customers from Korea and Africa.

Most of them use OA payment methods, and in the end, the money and goods were both lost. If you have doubts about current suppliers or customers and want to verify the authenticity, you can also contact us. Our company has a professional team that can help you conduct factory inspections and issue reports.

At the same time, if you want us to help you find a reliable supplier, you can also contact us through the form on the website.

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