subject: Russia Fraud Cases Present Serious Risk for Business [print this page] Russia Fraud Cases Present Serious Risk for Business
Moscow private investigators normally disagree on just about everything from the best methods to prevent scams and fraud, to the best investigative techniques, to the country's image and transparency. This year, however,Russian private investigators seem to agree on one issue. Risk for businessfraud and scams in Russia is at high levels andinvestigators and international business consultants strongly advise background checks and due diligence to minimize the risk. There have been too cases of fraud.
Russia's economy has been hit hard after the global economic crisis, and the country's oil revenue has been cut dramatically due to the fall in crude oil prices and the decrease in consumption by importing countries. Crude oil has been making acomeback, but Moscow residents arestill struggling with the post crude oil and credit boom that turned Moscow into the world's most expensive metropolis. International investment is down, and what remains is a high risk environment lacking political and economic transparency, and lots of inefficiency. The increase in scams and fraud has made international businessmore difficult, and Russia private investigators are increasingly being used fordue diligence.
The most commonform of business fraud in Russia is advance fee fraud, and the fees can come in the form of advance lines of credit, pre-payment for goods or services, and down payments, shipping fees, or minimim initial investments. Scammers are increasingly using complex methods to convince their business partners, including meetings in business facilities, government and corporate document, official ID and issued passports.
International business deals or foreign investment in Russia is a high risk venture, plain and simple. Professional private investigators and business consultants say that doing business without a Russia background check or due diligence to verify the parties involvedcan be a costly learning lesson. For criminals, the increase in people seeking opportunity in Eastern Europe has provided a unique and profitable hunting ground, and law enforcement has been slow to respond to the complaints and court filings.
Are there business opportunities in Russia? Absolutely. The advisory from Moscow private investigators toproceed withextra caution is good advise.Be safe. Be skeptical and verify.
