The businessman or woman involved in international trade could be exposed to the following fraud risks:
Being conned into flying to another country by kidnappers pretending to be genuine business partners.
Advance fees for processing fictitious lottery wins.
Being asked to send shipping charges for free items from unknown people.
Shipping goods to buyers in advance of payment or proper sale agreements.
False investment offers.
The following tips will help you play it cool and safe all the time.
Try to understand your business partner well before any substantial transaction(s). One should seek reference from a trade association of the partner’s country or arrange for introductions through the partner’s government representative at the Embassy.
Always control lust for free things. Who can give you free items and yet he or she does not know you well?
Always carry out due diligence in all international business and financial transactions.
Seek advice from a consultant and have an export or import agreement before transacting business.
Negotiate for deposit with order.
Incases where you are invited to another country, always involve your country’s representative in that country and make his office the first contact place with customer or client.
Conclusion
Fraud in international trade can be very devastating to the novice as well as the seasoned cross border trader. All capital can be wiped out in a moment and even life can be lost. It is, therefore, incumbent upon every one to guard against this vice at all times and places. Vigilance must always be excercised.
Topic: advance fees, contact place, due diligence, financial transactions, first contact, fraud risks, genuine business, government representative, kidnappers, shipping goods