Typical Cases Of Trade Fraud: Be Careful!
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Typical Cases Of Trade Fraud: Be Careful!

Recently, the Economic and Trade Office of the Chinese Embassy in Kenya has received many letters from domestic import and export companies, saying that when it was engaged in export business with companies such as Kenya and Uganda, it encountered trade fraud, which caused the goods to remain in the port of Mombasa, Kenya, resulting in high port charges , or the goods were taken away but the payment was not paid, and the company suffered heavy losses. The recent cases are summarized as follows, once again reminding exporting companies to guard against trade fraud.


Typical case 1:


Domestic Company A and Kenya B Company signed a sales contract for agrochemical products and designated CITIC Insurance. Company A sent the three-ticket goods to the port of Mombasa designated by Company B (the consignee of the goods was in Uganda), and handed over the full original documents of the first ticket to the Ugandan Bank designated by Company B through bank collection. However, when the payment has expired, Company B neither pays nor picks up the goods. Therefore, Company A asks the other bank to return the full set of documents through the billing bank, but the bill of lading returned by the other bank is a color print, not the original bill of lading. However, when Company A contacted Company B through the way CITIC provided, Company B did not sign a contract with Company A. Therefore, Company A determined that someone had impersonated Company B and signed a contract with it.


Typical case 2:


The domestic company A communicates with the Internet of a well-known company in Switzerland, and company B sends an inquiry to the company A and reports the details of the headquarters. Company A reported to the domestic local export credit insurance company for approval, and finally signed two batches of export contracts with Company B, and sent two batches of goods to the Swiss headquarters and a Kenyan company. Company A is underwritten by the export credit insurance company for OA 60 days, and the bill of lading is directly mailed to the contact person of Company B. After receiving the bill of lading, the Swiss company said that the two shipments were not determined by them, and it was suspected that they were pretending to be fraudulent and that the Kenyan company had no relationship with it.


Typical case 3:


After the introduction, the domestic company A communicated with the contact of a US company B and signed an export contract with company B. The contract stipulated that the goods should be sent to the Kenya branch to the port of Mombasa. Company B contact email confirmation is paid by the US head office, and the payment terms are 0A60 days. After the company A finished the first batch of goods, the other party added a batch of goods. When Company A starts to urge the first payment, the other party's reply is applying for VISA, the payment is to be paid to the US company, and the documents of the second shipment are required to be handed over to the contact of Company B, and the contact arranges the payment together. The other party delayed the payment several times, and later said that the CEO of Company B had broken his hands and feet due to serious traffic accidents, and was temporarily unable to pay. He later said that the CEO died in the accident and could not arrange payment. Company A felt that things were not good. Immediately entrusted other customers to understand the situation and found that the claimed Kenya branch address was correct, but could not find the company.


There are strong similarities in the fraud techniques of such cases:


1. In the name of Ugandan, Kenyan or foreign well-known enterprises (or their subsidiaries), register an intermediary company in Uganda, use its popularity and information to defraud, forge documents, signatures and employee status, and sign false contracts.


2. Trading with high-risk payment methods. Using my export company's lack of understanding of the new market and eager to expand the trade volume, we require the use of credit-selling (O/A) and other sellers with a higher risk of payment, and refuse to pay or even lose the link after delivery.


In view of this, it is recommended that companies be more vigilant when dealing with merchants such as Uganda and Kenya, pay attention to the following points:


First, avoid trading with the above-mentioned high-risk payment methods, and try to use the letter of credit to pay to reduce risks;


The second is to carefully select trading partners, carefully identify foreign information, and understand the credit status of each other through multiple channels, including telephone contact with the company headquarters to verify the authenticity of the branch and orders;


Third, after the occurrence of the case, timely take appropriate legal means to protect their rights and interests, such as reporting to China Interpol in time, and assign personnel to the place of cargo to handle the goods return or transshipment, try to minimize losses, and to the competent authorities and The Economic and Trade Office of the Embassy reflected the situation.



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