Fraudsters target traders with fake suppliers, false documents and payment scams. Simple checks can stop most of them.
International trade fraud takes many forms, but most schemes rely on the same weaknesses: pressure to act quickly, unverified partners and payments that cannot be recovered.
Common schemes
- Fake suppliers: websites or social media profiles offering goods at unusually low prices, which disappear once a deposit has been paid.
- Payment redirection: a message, apparently from a known supplier, announces new bank details, and the payment goes to the fraudster.
- False documents: forged bills of lading, certificates of origin or inspection reports used to obtain payment for goods that were never shipped.
- Counterfeit or substandard goods: products that do not match the agreed specifications.
Warning signs
- Prices far below the market.
- Pressure to pay immediately or in full in advance.
- A change of bank account, especially to an account in a different name or country.
- Reluctance to allow inspections or to provide verifiable company information.
Safeguards
- Verify the company's registration, address and references through independent sources.
- Confirm any change of bank details by telephone, using a number you already know and never one given in the same message.
- Use secure payment methods such as letters of credit or escrow, and avoid large advance payments to new partners.
- Commission an independent pre-shipment inspection for significant orders.
- Keep all records, and report suspected fraud promptly to your bank and to the competent authorities.
Traders who believe they have been targeted can contact the Council for guidance.
This article provides general information only and does not constitute legal advice.