Learn Export Import Business

Fraud On Export Import Business and Protection Tips

Global economic meltdown has severely strained companies engaged in export import business. Absence of buyers from market is driving many exporters to accept export orders which they otherwise would have declined for lack of prudential norms.
Ironically, this is the time to exercise more caution as fraudsters may exploit present desperation in market to target more exporters with seemingly lucrative deals.

Exporters should be very cautious about certain geographical regions which have become a favorite destination for fraudsters and con artists.

Some may find it sweeping generalization or even unfair treatment - but the fact remains that there is no sign of a decline in scam proposals even after wide publication of Nigerian and other scams.

Worse, the fraudster populations seem to be growing everyday with newer and more daring con games. Victims have nowhere to go as there is no law court or policing authority against these fraudsters.

Exporters and importers should be careful of various seemingly lucrative proposals coming from certain regions and countries such as Nigeria, Benin, Togo, Cote' D Ivory etc. and exercise enough caution.

We document here a few scams. Some of these are specific to certain geographic regions - others more universal.

Nigerian Money Offer (419 scam)

This is by far the most popular one - where Nigerian businessman, Bank Manager, Govt Bureaucrat or just about anybody offers huge sums for small help in siphoning money out of their country. We have written many articles on this scam (also called Nigerian 419 scam). One may get an exhaustive list of scams and gain more information on suspect regions at this b2b portal for Indian exporters

Nigerian Oil Fraud (Bony Crude)

Bonny Light oil is a grade of crude oil produced in the Bonny region of Nigeria. Fraudsters present lucrative and legitimate looking offer for this oil. These self-declared oil traders offer to sell as much as 1,000,000 barrels of Bonny Light oil at below market rates. In many cases, they are able to present legitimate trade and shipping documents, acknowledging the seller's oil allocation rights. Buyers who accept these trades are persuaded to provide significant cash fees up front.

The charges are normally in the region of $50,000. Fraudsters claim the charges are for anything from agency fees to reassignment charges.

ICC's International Maritime Bureau (IMB) has found that a variety of false supporting documents are being used, all of which allegedly feature the corporate logos of legitimate international companies, such as the Nigerian National Petroleum Corporation.

In the majority of cases seen by the IMB, this forged paperwork includes the following documents:

- Joint Venture Contract Agreement for the Sale and Purchase of Nigerian Crude Oil; - Charter Party; MOU between Nigerian sellers and named buyer; - Master's Receipt of Documents; - Certificate of Authenticity; - Joint Venture Bill of Lading; - Master's Receipt for Samples; - Cargo Manifest; - NNPC Bonny Terminal Certificate of Quantity; - Certificate of Quality.

Often these meticulously forged documents name vessels that actually loaded oil cargoes at Bonny. The vessel's stamp and master's name - though not the signature - are often also correct. The genuine cargo, however, is consigned to a completely different party.

Illegal Immigrants Disguised as Buyers or Agents

Fraudsters run illegal immigration racket in the disguise of export Import Company. They offer to send buyers or agents for negotiation, inspection of manufacturing facility etc. and request official invitation letter from exporter/ manufacturer. Visa, obtained by producing these genuine papers, is then used to send illegal job-seekers.

When in doubt, please check the age and position of the visitor. Very young or low ranking buyers should arouse suspicion. If you receive request for groups of buyers - please check the credibility of the company thoroughly.

Un-Collectable Payment

If you receive Letter of Credit (L/c) from an unknown local bank, be sure to check the bank's credibility. If there are any doubts about its financial condition, it is advisable to request confirmation of the L/C from a reliable bank.

Refusing payment for Remaining Shipment

This is a common trick where the fraudster gains trust of exporter in first part of a deal by making immediate payment by T/T. However, he refuses to pay for second part of the shipment. When working on a T/T basis, there is very little an exporter can do if importer refuses to pay. It pays to remain alert - one successful deal should not change all equations.

Avoid Payment through Changed Identity

Some importers deliberately shut down their existing companies and set up new ones in order to avoid payment, leaving exporters unable to collect money. If your partner suddenly changes his or her company's name and places a big order on credit, it is wise to check the company's legal status on the export contract and shipping documents.


Amit worked in blue-chip Indian and MNCs for 15 years in various capacities like Research and Information Analysis, Market Development, MIS, R&D Information Systems etc. before starting his e-commerce venture in 1997. You can find more articles of Amit on e-commerce and export import trade over Internet her.

Contact the Author
Dr.Amit Kumar Chatterjee

editor@vanik.com
More Details about http://www.infobanc.com/ here.


Common Internet Frauds in Import Export Business - Part I

How to Protect Yourself from Sample Chors

The Internet offers a global marketplace for sellers and buyers from every corner of the globe. Inexpensive, fast and convenient - these are few of the qualities that has made Internet so popular among business community in such a short span of time. It offers a level playing field for all business - irrespective of size and location.


Unfortunately the anonymous nature of Internet - bedrock of a free and fair global communication medium - has been abused by scamsters and con artists to defraud at global scale. Crooks also recognize the potentials of cyberspace. So, we see same scams that have been conducted by mail and phone on the World Wide Web and in email.


Without prior knowledge about these scamsters and how they operate - it is hard to tell the difference between genuine online sellers and criminals who use the Internet to rob people.

This article discusses common business related frauds and abuses as also how to protect yourself from such cyberfrauds.

We have identified following frauds and abuses that commonly take place in e-business transactions. It should be noted that the borderline between abuse and scam is rather thin in cyberspace, one should exercise proper caution as there's hardly any regulatory body that can punish these scamsters.

Sample Chor ('Chor' is a Hindi word - meaning thief)


False promise leaves manufacturer bankrupt


L/C fitted with limpet mine



Part Payment Scam



Bank colluding with Fraudster



Illegal immigrant disguising as buyer



Switching identity



Abusing Payment Clause to delay payment



Switching identity



Fax Fraud



Loan Scams



Internet Hoax



Nigerian 419 Money Offer Scam



Nigerian Scamsters in the disguise of buyer



Non-existent Internet Services



Nigerian Oil Import Fraud






Sample Chor - Common Internet Abuse

Samples and catalogs are very important for buyers in selecting new supplier/product. It is quite unlikely that a major order will materialise without the buyer checking samples or meeting seller in person. However, sellers can not send samples to every inquirer - as there are many unscrupulous traders as also fraudsters who collect sample for exerting pressure on existing supplier or simply making money. As I said - the borderline between abuse and scam in cyberspace is rather thin in most cases.

How to distinguish between genuine buyer requesting sample and a habitual sample pincher ? ('Chor' is a Hindi word - meaning thief).

Like most things in life - there is no short cut or surefire solution - careful observation, prior knowledge of similar scams and exercising caution can help you protect yourself from most scamsters. Its like driving car - while there is no guarantee that accidents never happen - one can cut down significant risk factor by following traffic rules.

Here are a few tips :

Sample is part of a business transaction - a serious buyer usually negotiates on all business terms like payment method, delivery, quality etc. alongwith sample. On the other hand - the negotiation of most sample chors start and end with sample. So, exercise caution if you sense undue haste in request for sample.


A serious buyer knows what he or she wants or is pretty near to it. Overseas retail shop owners may sometimes lack clarity in describing exact look or specification of a product - however they are specific about their requirements, order quantity, nature of their clientele etc. Close examination of articulation of interest provides clue to the actual intent of inquirer. However, the articulation of a non-English speaking person can not be ideal and one has to factor this in the evaluation.


When an unknown buyer requests samples while hinting at a large order, it is always wise to request at least a nominal payment for the samples or at least the mailing cost.


Ask for Buyer's Federal Express Account number (so that courier cost is on buyer's account). Fed-Ex in India offers the service where you can send sample at buyer's expense, the buyer should have a Fed-Ex account. Regular buyers usually maintain account with one or more international courier companies like Fed-Ex, DHL, UPS etc.



My experience is that, serious buyers usually do not mind paying courier expense. Remember, courier cost is usually many times than sample cost and anybody who is ready to pay that should be very serious.

A note of caution - please exercise discretion if you are asking handsome advance payment. Asking advance payment for sample is not same as asking Fed-Ex account number. Even serious buyers may not like to pay an unknown seller in advance. Put yourself in buyer's shoe and ask yourself if you would do what you are suggesting others. International business is full of risks (and comensurate gain) - you should learn to cope with it. Overdose of caution may kill an otherwise lucrative contract.

Happy Surfing

Dr. Amit K Chatterjee

Asian Crafts from Bangladesh offers Finished leather
For wholesale order, Price quote, Please Contact:088-01190234176, or email: shameem.sarwar@gmail.com
  
  With a capacity of over 100000 sq.ft. of leather per month,
  Asian Crafts Provides you with a leather quality that confirms to the International Standards of being PCP and azo-free.
  Leather types that we export are goat, sheep, buffalo & cow.
  
  Offering you the following finishes:
  Cow vegetables – Leather produced using nature, friendly technology of vegetable extracts instead of chrome powder. Similar to the Italian Leathers this may be milled cow veg or plain cow veg in look.
  Cow Nappa – Nappa means soft, leather is soft and smooth to touch.
  Cow Glazed – Glazed is based on protein finish to give the leather a natural look.
  Cow oil pull up – A Semi Chrome leather with a natural break and smooth touch.
  Cow DD
  Cow DD / DM
  Cow Antique
  
  Many of these finishes are possible in goat, sheep, buffalo or cow leather.
  
  Ask for any color shade and it will be yours! Besides, our experience shows that colors generally preferred are black, brown, cognac, burgandy.
  Please note that there might be a slight color variation.
  It’s mainly due to the variation in the size of hides, leading to unequal absorption of color chemicals.

Asian Crafts from Bangladesh offers handicrafts
For wholesale order, Price quote, Please Contact:088-01190234176, or email: shameem.sarwar@gmail.com
  
  Our wholesale handicraft productions and handicraft supplier of Asian Crafts handicrafts service is dedicated to providing both the widest range of wholesale giftware, wooden handicrafts, terracotta handicrafts, bamboo handicrafts, leather products and quality personalized services for buying handicraft designed to produce excellent profits when resold. We welcome the challenge of creating or finding new handicrafts to meet the needs of an evolving markets and can gather comprehensive new handicraft options to meet your needs.
  
  As we are both licenced handicraft exporter and Asian Crafts handicraft wholesale supplier you can expect to make a profit by reselling our products, buying Asian Crafts handicrafts at unbeatable prices. We can efficiently ocean freight either LCL (less then container) or FCL (full container) wholesale handicraft orders cost effectively to almost any worldwide location.
  
  Our handicrafts buying managers and handicraft quality control staff see that wooden handicrafts terracotta handicrafts, bamboo handicrafts, leather products and Bali handicrafts are inspected for uniformity, moister content and other strict quality control criteria. Our experienced packing and warehouse staff see that all handicraft orders are well packed for safe shipping and maximum use of shipping space.

Internet Frauds and Scams - Part I

Understanding the Fraudsters and their work

The Internet is a wonderful gift for mankind. It is wonderful and unique not because of the technological marvel of connecting 160 million servers or seamless surfing across continents - but the real strength of Internet is the people in front of those billions of computers who can interact with each other and build a society free from geographical, physical and political barriers. It is a unique experience in the history of mankind and is set to bring about fundamental changes in our life including how we do business.

Unfortunately, the ability to roam anonymously in a borderless world has also given fraudsters and scam artists a new tool to trick and defraud more people across the continents - a huge scope to scale up their operation.

It is extremely important that we understand how this new generation of fraudsters and con artists defraud people so that we remain ever alert.

What is Internet Fraud ?



The age old principle of playing on greed to defraud people remains same - fraudsters have adopted new techniques. The term 'Internet Fraud' generally refers to any type of fraudulent scheme or scam that uses one or more components of the Internet, e.g. e-mail, chat, bulletin board, websites, auction etc.

Internet Frauds are more dangerous than ordinary crimes as they can affect far more people in far less time than was possible with many fraud schemes in the past.

How Large is the Rip-Off ?



The size of Internet fraud is, in all probability, much larger than you think. In the absence of worldwide scam reporting and policing system - it is extremely difficult to assess actual size of the scam but sectoral or geographical studies point to a significant scale.

For example, Internetweek has reported that more than 1 percent of total online sales (US$ 700 million) was lost due to fraudulent activity in 2001 (according to Gartner Inc.'s G2 research service). The $700 million, which represents 1.14 percent of total online sales of $62 billion, is nearly 20 times higher than the dollar value of fraud losses related to offline sales. In an Internet survey of 1,000 adult online consumers in the U.S., Gartner found 5.2 percent were the victims of credit card fraud in 2001, while 1.9 percent were victims of identity theft. (http://www.internetweek.com/story/INW20020304S0005)

The Royal Canadian Mounted Police estimates Canadians have lost about $30 million to Nigerian Advance Fee scam over the last ten years and reports that about 10,000-15,000 letters pushing variations of this fraud from Nigeria have circulated in Canada (http://www.rcmp-grc.gc.ca/scams/nigerian.htm).

What are the Different Types of Internet Frauds ?



I have compiled following 34 scams, frauds and hoaxes by researching various Govt and NGO websites, scanning news articles and interviewing scam victims. By no means is the list comprehensive - innovative scam artists are always looking for new avenues.

Fake/Non-Implementable Letter of Credit



Pay 25% advance and forget the rest


Advance Fee Loans



Auction Fraud



Business Ventures



Chain Letters



Classified Directories



Computer Crime



Computer Security



Counterfeit - Currency



Counterfeit - Payment Cards



Credit Card Fraud



Credit Card Insurance



Domain Name Registration Scams



Donation Solicitation



False / Deceptive Invoices



Fraudulent Online Purchases



Gemstone Scams



Home Renovation/Repairs Fraud



Identity Theft



Investors International



Lottery Scams



Nigerian Advance Fee Scam



Online Shopping



Pentagano Scheme



Phoney Bank Inspector



Phoney Job Opportunities



Prime Investment Scheme



Pyramid Schemes



Spam



Telemarketing Fraud



Theft of Telecommunication



Work-at-home Schemes

Virus Transmission






We shall discuss every item in future issues.



If you are a scam victim or know of a novel scheme that is not reported here - please inform. I shall be happy to include in the list and share with other readers.


Internet Traps - The Nigerian Scam

We have discussed Tips and Tricks in last few issues. Let us examine the dark side of Internet scams in this issue.

What happens if someone offers you US Dollar 5 million free ? All you need to do is to forward your bank details to a civil servant or descendant of a presidential/royal family so that a huge unaccounted sum lying in govt exchequer / bank vault can be deposited in your bank account. You get a cut of 5 million dollars just for allowing these guys to make use of your bank account.

It sounds crazy and perhaps 99% people, when presented with the offer, will laugh away or remark “hey ! one more trickster’. However, there is 1% who doesn’t think so. So, watch out !

What is Nigerian Scam ?

A Five Billion US$ (as of 1996, much more now) worldwide Scam which has run since the early 1980's under successive governments of Nigeria. It is also referred to as "Advance Fee Fraud", "419 Fraud" (Four-One-Nine) after the relevant section of the Criminal Code of Nigeria, and "The Nigerian Connection" (mostly in Europe). However, it is usually called plain old "419" even by the Nigerians themselves. The Nigerian Scam is, according to published reports, the third to fifth largest industry in Nigeria.

How Does the Scam Operate ?

The beginning of the scam is an e-mail, fax or letter. The target receives an unsolicited fax, email, or letter from Nigeria containing either a money laundering or other illegal proposal OR may receive a legal and legitimate business proposal by normal means. Common variations of the scam include "over invoiced" or "double invoiced" oil or other supply and service contracts where the Nigerian operators want to get the overage out of Nigeria; crude oil and other commodity deals; a "bequest" left in a will etc ..the variations are very creative and virtually endless. You will be asked to forward your bank details and office stationery to the contact in Nigeria for preparing the legal documents for money transfer.

Sweeten the Deal... Slowly

Once the gullible falls for the story, correspondence starts and an impression is created that everything is in order and the target is about to pocket his lifetime deal. The goal of the scam artist is to delude the victim into thinking that he or she has been singled out to participate in a very lucrative although questionable -- arrangement. The intended victim is reassured of the authenticity of the arrangement by forged or false documents bearing apparently official Nigerian government letterhead, seals, as well as false letters of credit, payment schedules and bank drafts. The scam artist may even establish the credibility of his contacts, and thereby his influence, by arranging a meeting between the victim and "government officials" in real or fake government offices.

The Screw Tightens !

Then suddenly the victim is asked to pay up front an Advance Fee of some sort, be it an "Advance Fee", "Transfer Tax", "Performance Bond", or to extend credit, grant COD privileges, whatever. If the victim pays the Fee, there are many "Complications" which require still more advance payments until the victim either quits, runs out of money, or both. If the victim extends credit etc. he may also pay such fees ("nerfund" etc.), and then he is stiffed with NO Effective Recourse.

Finance risk extends to Life Risk

If it goes still further and they get you over to Nigeria (or wherever), you are in serious danger that may even be fatal. Many Americans and Europeans are said to have ‘disappeared’ once in Nigeria. Victims are almost always requested to travel to Nigeria or a border country to complete a transaction. Victims are often told that a visa will not be necessary to enter the country. The Nigerian scam artists may then bribe airport officials to pass the victims through Immigration and Customs. Because it is a serious offense in Nigeria to enter without a valid visa, the victim's illegal entry may be used by the scam artists as leverage to coerce the victims into releasing funds. Violence and threats of physical harm may be employed to further pressure victims. In June of 1995, an American was murdered in Lagos, Nigeria, while pursuing a 4-1-9 scam, and numerous other foreign nationals have been reported as missing.

Conclusion

Avoid these scams like the plague! Don't let promises of large amounts impair your judgment. If you are already a victim or looking for legal remedies, check the websites listed below. It contains information on whom to contact for reporting the scam and lots more.

More Information

Nigeria - The 419 Coalition - dedicated to exposing a worldwide scam which has run for the last ten years under successive governments of Nigeria. http://home.rica.net/alphae/419coal/

Scam o Rama: featuring The Lads From Lagos http://www.smokefreeworld.com/lads/scam.shtml

A free award winning e-zine: Internet ScamBusters Internet ScamBusters is an award winning free electronic newsletter (e-zine) to help people protect themselves from Internet scams, misinformation... http://www.scambusters.com/


Next


Search keywords - kid science toys, education toys for kids, occasion gifts, science toys for adults, physics toys, science toys, education toys, Outsource Web Design Company, web bangladesh, Professional Website design, Affordable Web Design Outsourcing Dhaka - Bangladesh, Website Design Company,Outsource Website Design, Web Design, Professional Ecommerce, Online Sote, zencart, Website Design Company, website developer company Bangladesh, Bangladesh web hosting Dhaka , Affordable Dynamic Website Design Ecommerce Solutions Dhaka Bangladesh