How to Recognize & Avoid The Most Common Foreign Trade Frauds | Export Nightmare

Foreign trade frauds do happen in an International Trade. The Question arises, how to avoid them? How to avoid such International trade frauds? Let’s check in details & try finding ways to avoid them as well. 

“A scam is a scam. A fraud is a fraud. Different rules don’t apply in the City than they do for you and me.”

– Emily Thornberry

Frauds & crime in International business might take place. You never know. Your foreign buyer may bluff you before the deal. Your Buyer may include your deal in foreign trade frauds. Many people are scared to start export imports just because of these things. It’s Vital to stay safe than sorry. No doubt, full practical knowledge is necessary. Let’s study some major foreign trade frauds:

  1. Advance Payment Scam:

Buyer wants to take goods in 30% advance payment. 70%,  he would pay later. You send all the goods with proper paperwork & he does not pay further. This scenario happens in case of negligence in maintaining a proper system. In the export import business, both advance & after payment do happen. Nothing to worry much about, if you follow a proper system. Foreign trade fraud is a chapter that every exporter or importer should know & learn. After Payment is good. Advance Payment is more than good. Here, it is important for you to trust the other party in the right way. 

  1. LOI ( Letter of Intent) Scam:

Here you may get huge orders of your product. Frauders might want the orders in a very huge quantity. They will ask you to fill up a vendor registration form. They will ask you to just pay Rs. 70,000 For that particular form then the order will be confirmed. In case, you pay the amount then your amount will be gone forever. This does happen in the list of foreign trade frauds. 

  1. Mails:

In the export import business, the frauders can approach you through mail. The mail body might look 100% professional including the content. They might just ask for some xyz amount in order to start an export import deal. That’s false! I know that no one would ever make a payment before cross checking. But as we say “better be safe than sorry”. 

  1. Letter of Credit Scam:

Buyer might say about 30% of advancement. 60% of LC (Letter of Credit) & 10% will be done after he receives the goods. Say No to them. Ask them to do 30% of Advance payment with 70% LC. End of the debate! What might happen is that the 10% of payment could be unpaid. Yes, you heard that right. Such things do happen in International Trade Frauds. 

  1. Online World Scam 

Big foreign trade frauds might just start with one click. The Online World! In B2B portal, there is a huge amount of information involved. You might see well known products at lowest costs. Sounds interesting? Ofcourse, it does. Fake websites, posts, social media posts might just grab your attention. Remember, there is a thing called ‘Foreign Trade Frauds’. 

Overcoming Foreign Trade Frauds


The most important thing is to avoid advance payments. There is no rocket science involved here. You are just about to deal in International business, that’s enough to say. Before cross checking, there is no option of paying in advance. Also, while paying it’s important to use better protection like; letter of credit. Here, proper paperwork is must. 


Before ordering full goods, ask for the sample. Getting sample orders would help you to check the quality & proper verification of products. 

Country Visit: 

If you have enough time & cost, you can visit the location. Visit the location of a partner or cross check with any third party. 


If any party is offering the products at the lowest price, be careful. You cannot just by looking at it but yes be careful. Keep in mind, foreign trade frauds do exist. 

Internet:While cross checking & researching, just research each & every thing on the Internet. 

What To Do if Things are not in your favour

International trade frauds never arrive before informing you over a phone call. Don’t just feel that now there is no way. There is always a way! Save yourself from foreign trade frauds by doing various things. Just make sure that everything is recorded with proper proof. Once you have proper proof definitely you can go to court. You can take legal actions You can take the support of the news media or even social media. Currently, the social media world is growing very strong, better to take it’s advantages. 


Over and above, you can avoid foreign trade frauds if proper care is taken. Also, there is no room for believing into something blindly. Join Digital exim, india’s finest export import consultancy group. Digital exim gives you proper A to Z export import training to save yourself such frauds & to make you the best International businessman. Call on 9505506333 or visit www.digitalexim.com

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