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Index > Knowledge > A must-read for foreign trade novices! Three major scams that foreign traders must be wary of!
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2024/03/11
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A must-read for foreign trade novices! Three major scams that foreign traders must be wary of!
Foreign trade scams are not uncommon in foreign trade transactions, and can even be said to be very common. For some foreign trade people, foreign trade scams can basically be said to be a history of blood and tears.
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Most foreign traders who suffer from scams will lose everything at least, or make compensation in reverse. Therefore, it is very important for newcomers to foreign trade to understand some common foreign trade scams in advance, which can help foreign traders avoid them to a certain extent. Some pits.
 
certification scam
 
Many customers will require foreign traders to issue relevant certifications during the negotiation process. Relevant qualification certificates can not only help foreign traders gain the trust of customers, but also serve as the entry threshold for some markets. Since this requirement is reasonable and common, some fraudsters will find foreign traders as buyers and ask for qualification certificates from designated institutions before they are willing to conclude a transaction.
 
 
 
When foreign traders follow the requirements, it is equivalent to performance for the organization. The result is that foreign traders will not only lose testing fees, but also waste a lot of time. The most direct way to judge this scam is to see whether the other party has designated a single and unknown testing agency.
 
Pay on behalf of
 
This is a scam set up by taking advantage of the basic trust between the foreign trader and the customer. When the foreign trader finalizes the order with the customer, he will receive a payment far exceeding the order amount. At the same time, the other party will claim that he accidentally The wrong payment was made and I hope the foreign trader can transfer the payment to other suppliers.
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Many foreign traders will respond to this request out of the desire to maintain good customer relationships. But this is actually very unsafe, because the other party is likely to use you to "launder money", and the risk will be very high.
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Therefore, when foreign traders encounter this kind of situation, they must be vigilant and ask the other party to issue relevant authorization certificates. If the other party is unwilling, then refuse the other party.
 
Sinosure scam
 
CITIC Insurance is a layer of insurance that buyers and sellers add for themselves, but the premise is that you sign it with a real customer. If the information provided by the other party belongs to the company and it has no bad records, then the review will pass, and the result will naturally be predictable.
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Therefore, foreign traders must do a background check. You can directly search the customer name through tracing data, check the customer's detailed information, including customs orders, social media accounts, official website, etc., and verify whether the information is consistent with what the other party said.
 
（Source：ueedata）
 
For example, during the communication process, you determine that the other party is only a small and medium-sized buyer, but the buyer found is indeed named "99 CENTS ONLY STORES LLC", and the transaction volume and number of transactions displayed are very large, then the other party will It is very likely that false information was given so that the person could disappear with the money later.
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We will find that these scams are actually not that obvious. Many of them appear to be normal transactions, and they are all carried out on the basis of establishing a certain amount of trust with foreign traders, so the probability of foreign trade traders falling into the trap is very high. Therefore, foreign traders must be cautious and cautious during the transaction process to avoid being too anxious.
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At the same time, foreign trade people also need to keep abreast of the latest foreign trade scams. With relevant experience, the probability of being scammed will actually be much lower.
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If you want to know more about foreign trade scams, you can send us a private message~
 
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