Apparently ;look harmless but ever wondered ; how do a scammer make money out of it?
Surprisingly in #international #trade majority are innocent scammers; without knowing that they are part of scam. They just thought to earn money as a commission without knowing the bigger picture behind. Many such trade brokers doesn’t know who has actually floated the inquiry, but working hard with a dream to make money !
Now , the person who has floated the original inquiry what is their intention ? many such cases a broker, who act smart ; floated the inquiry to get price information from various sellers and then compile that info to get lowest price of that commodity . Now, when this purpose served; they start advertising as seller! Irony is, one man becomes seller and buyer both without owning inventory and liabilities ; but it’s a pipe dreams no such trade happens in reality! Such scammers are many and active in countries like India, Dubai, China etc. you find majority of such LOI ( Letter of intent) originated in such countries
Few other scammers float inquiries; to get SCO / FCO (full corporate offer ) and then they take it to their banker and apply for trade loan in collusion with bank executives . Once, a loan they could manage, start talking to importers that they can get them at a better price and supply locally! Chances of real transaction is similarly very rare but keep market busy with such fake inquiries. Many such scammers are active in Egypt, Iran, Africa , Ukraine , Russia .
Some big scammers have other innovative way ; they talk about procurement through UN funding / humanitarian aid funding ; when they would ask you to visit their country and sign a legal agreement. A genuine seller can get into that trap easily ; visit and sign a fabricated false legal documents with hefty legal fees in tune of USD 10,000 or so. Now this money these scammers share with the legal experts ! Normally originated in Africa region.
Advance full TT payment / transaction in cash currency ( physical handover of suitcase full of cash ) is old scam concept .
Payment after receiving goods at destination
Processing LC after goods despatched; here the scam not to process after despatch of few days and start negotiating with 40 to 50 % values . In such cases , the cost of calling back the goods even higher than distressed sale . Most such cases originated in Middle East , Africa
Requesting big volume free samples, and surviving on free samples :)
Scammers active in many other innovative ways! Many of them are well known methods of romance scam; As a buyer rep, they could be falling in love with you and then scam you various ways either sending you gifts / asking monetary help. Apparently , it look innocent when a beautiful looking woman lures you to send gifts ; you may find harmless , as you have nothing to loose but you get a call after few days from their con agent claiming that a big parcel came in your name and it exceeded the limit in your country so consignee need to pay addition of few thousands to release cargo ! the whole story is a scam , and there is no cargo physically. such scams mostly from Russia , UK, US
Some scammers even invite you for a trade summit / as participant or speaker and they promised to bear all your travel and hotel expenses . Looks attractive to have some opportunity ; however the real scam is in visa processing. They would insist to process visa through their appointed agency and you need to pay visa expenses with a promise that cost would be reimbursed once you report for such trade event. But ultimately, once you send money for visa ; the visa never comes. Such scam originated mostly in Europe and US
we would keep on posting such info; so you catch hold of such scammers and make global trade a safer place for real genuine professionals; keep reading our blog section for such info.....