subject: Letter of Credit Fraud: Fake Documents [print this page] Author: Black-lists Author: Black-lists
A fraudulent exporter canobtain your money by using fake shipping documents. A common L/C scam: a fraudulent seller sends fake shipping documents to the opening or advising bank to prove that the goods were shipped. In fact, the goods never left the sellers warehouse or, more likely, never existed at all. Other documents like the invoice, packing list, export declaration, even Certificate of Origin can be easily produced by the scammer. In manyL/Cs the only documents needed for the L/C to be paid are the invoice and shipping documents. If the sellers bank believes that the papers are authentic and pays the scammer, the buyer will never see the goods and will spend much time in discussions with his bank. How to protect yourself? Always ask the seller to fax you the drafts of all the papers which are supposed to be sent to the bank. Check them carefully. Most of the shipping lines have online tracking system, where by entering the container number you can seewhen the cargo actually left the port and to which destination. If all looks acceptable, ask the seller to issue the originals and send copies to you by fax or e-mail. By B/L number you can always trace any shipment. It is a good idea to ask your bank (opening bank) to send you the copies of the documents received. You cancheck thembefore the bank pays the seller. You can include other papers to be presented to the issuing bank: inspection reports issued by an independent inspection company, all kind of documents issued by the official organisations of the exporting country etc.About the Author:
Black-lists.com provides information support and anti-fraud protection for companies involved in international trade. Our anti-fraud protection programme will help importers and exporters to not become the victim of a fraudulent company or individual. More information can be found on our site http://www.black-lists.com
