Distinguish between true and false! Beware of third parties using the buyer’s name to engage in trade fraud

Recently, there have been cases of some illegal individuals impersonating overseas buyers to deceive and deceive goods, causing significant losses to export enterprises. Fraud means involving trade subjects emerge in endlessly, and it is increasingly difficult for export corporate identity to identify true and false buyers, which has affected the realization of trade claims of export enterprises to some extent. Foreign trade enterprises need to strengthen their attention, vigilance, and ability to identify trade fraud cases. While seizing export orders, they should also strengthen risk prevention work in the field of international trade.

Case introduction

Guangdong export enterprise A received an inquiry from Mr. S, a self proclaimed buyer of B from the United States, through an international e-commerce platform. After receiving the quotation from Company A, Mr. S quickly confirmed the purchase amount of $300000, but he requested that the payment be settled on credit for 60 days. At first, Company A had doubts about buyer Mr. S, but to dispel Company A’s doubts, Mr. S provided a so-called “company official website” link for Company A to consult on its own. On the other hand, to show its sincerity in cooperation, Mr. S also paid a small deposit to Company A. After browsing the official website page provided by Mr. S and receiving a small deposit, Company A dispelled doubts and agreed to sign a trade contract with Mr. S with a settlement method of OA for 60 days. After the goods are produced, Mr. S instructed Enterprise A to send the goods to the Ugandan port. As the due date approached, Company A prompted Mr. S to arrange payment as soon as possible, but found that Mr. S had lost contact and the relevant goods had been taken away in Uganda. Enterprise A felt bad and reported losses to China Export and Credit Insurance Corporation Guangdong Branch.

Case handling

China Export&Credit Insurance Corporation Guangdong Branch entrusted overseas lawyers to contact Company B in the United States. Company B denied engaging in any transactions with Chinese company A and stated that it had not received the goods involved in the case and had no branch in Uganda. At the same time, Company B denied that Mr. S was an employee, and the email used by Mr. S was not his company’s email. Company B provided his official website for comparison, but at this time, the so-called “company official website” provided by Mr. S earlier could no longer be opened. Company B stated that it had reported the case to the local police after discovering that a third party had used its name to engage in transactions with foreign companies.

After review, the following issues were also found: firstly, the email address for Mr. S’s order is not consistent with the public email address on Company B’s official website, and the purchased products do not match the main products on Company B’s official website; Secondly, Mr. S instructed the goods to be sent to a third country via email, but the name of the consignee on the sea bill of lading is still the name of Company B in the United States. The delivery address is only added to the address of Company B in the United States, and the name of the third party country is directly added. The goods are picked up in the third country; Thirdly, there is a spelling difference between the payment account name and Company B on the bank receipt where Mr. S pays the small deposit, and the account address is located in a third country, not the United States. It can be seen that there is a significant risk of third-party trade fraud in this case.

Risk prevention suggestions

Although it is difficult to prevent the risk of third-party fraudulent trade using the buyer’s name, export enterprises still have corresponding preventive measures. The following suggestions are for export enterprises to refer to.

1、 Comprehensive investigation of buyer information, multiple verifications to distinguish authenticity

During the trade negotiation stage, export enterprises should not only inquire about buyer information through internet channels, but also have a comprehensive understanding of the situation of their counterparties. On the one hand, it is recommended to request the counterparty’s business personnel to provide company registration documents, such as the buyer’s company registration documents, business license, tax registration documents, etc., to verify the counterparty’s registered name, registered address, registration time, and responsible person, and to fully grasp the buyer’s information for easy verification. On the other hand, it is recommended to fully utilize tools such as credit investigation to obtain the buyer’s contact information through public information and obtain direct contact with the buyer to verify the authenticity of the transaction. For example, calling the buyer’s switchboard to request the transfer of the procurement personnel contacted this time, communicating with the buyer’s public fax number or public email for normal trade information, etc., in order to identify the buyer’s true identity in advance.

2、 Pay attention to initial transactions and be cautious about credit sales methods

The buyer’s first transaction requires a large amount of credit purchase, which is not sensitive to the price of the goods. They designate the goods to be shipped to a third country (common ports in Greece, Uganda, and other countries), all of which are high-risk signals of third-party trade fraud. For first-time buyers, it is recommended that export enterprises further increase their sensitivity to trade fraud, verify the procurement background to the greatest extent through various channels, and cautiously use credit payment methods.

3、 The bill of lading information should be consistent, and document changes should be made with caution

The bill of lading is the core voucher for the delivery of exported goods. It is recommended that the shipper and consignee information on the bill of lading be consistent with the trade buyer and seller, and be cautious in making changes to reduce transaction risks. Among them, in addition to spelling consistency, attention should also be paid to whether there is a significant difference between the recipient’s address and its registration information, and whether the notification person’s information is an individual with the right to receive the goods. If there are any doubts, it is necessary to verify with the buyer in a timely manner and clarify them through public information verification to avoid the situation of financial and goods shortages.