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NEWS: A fraud case happened in China in export business around July, 2022

· Transnational Commerce

Author's remark: This is a typical fraud case in international trade, that the scammers firslty manage to get the trust of the seller by placing small orders and nothing went wrong, and then start the scam by placing a much big order, and then no payments. So a tip is that you should be very careful when trust someone in another country.

It is impossible to prevent fraud in trade transactions. If you are not careful, your trust will become a chip for a liar to cheat you.

Recently, a foreign trader shared a foreign trade scam he encountered on the forum:

The customer is from India. At the beginning, the order placed in our factory is a small cabinet model. It has been more than a year since we cooperated. Every time, the letter of credit was used, and the payment was very straightforward, which won the trust of our salesmen.

In April this year, we started to buy 40 large cabinets, and ordered 10 cabinets at a time, so that we could buy two cabinets every month. Because of more than a year of cooperation, the customer said that he wanted to pay 10% in advance, and the boss agreed to the rest after customs clearance.

After the customer cleared the customs, I started to urge the balance payment the day he returned empty. He asked me to be patient every day and said that I would pay later. After waiting for a few days, I still didn't have a bill. I reported to the leader. The leader began to call to urge him. He began to show that he was also asking for money from his retailer. He paid the money as soon as it arrived. Up to now, we have not received the final payment, and we have lost two containers, worth 160000 dollars.

Please be wary of those customers who use small orders to win your trust, and then suddenly place large orders but change the payment method, otherwise I am an example. Although my boss didn't deduct my money, I felt very uncomfortable. There is no way for foreign customers to play tricks on us under the epidemic.

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