Fraud Prevention: Case Study 8 - Be Cautious! Even with Old Trade Partners

Problem:

“We are the exporter of leather wallets from Pakistan. We were approached by a South African buyer on your website. After negotiation, we finalized the price. He then placed a small order. It was delivered in a timely manner and we received payment from him immediately as well. He liked the product quality and later placed small orders from time to time. We always received the payments quickly as well.

After several successful transactions, he showed interest in placing a larger order as he felt confident in our product and services. However, he said that this time the payment will be sent by his partner and it may take a little longer before we receive it. Keeping in view our previous successful transactions, we agreed. We delivered the goods and it's been 8 months now, but we never received the payment of USD $8,500. He always made excuses that his partner was delaying the payment. We have finally given up”.

Evaluating this Case:

1. A con-artist commits this fraud by psychologically playing with the supplier. He will present himself as a serious buyer and place small orders from time to time with quick payments to build his credibility and prove that he is a good buyer. He will eventually place a larger order to deprive the supplier of his valuable goods. Considering their previous successful transactions, the supplier will trust the buyer and get ripped off.

2. Regardless of the fact that you have a close association with your trade partner, always take into consideration the safe trading practices and foreign trade processes when conducting foreign trade with your trade partner.

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Fraud Case Studies:

Fraud Prevention: Case Study 5 - Fake Purchase Orders by Dishonest Immigration Companies

Fraud Prevention: Case Study 6 - First Meeting with the Supplier in Person

Fraud Prevention: Case Study 7 - Extremely Low and Attractive Price

Fraud Prevention: Case Study 8 - Be Cautious! Even with Old Trade Partners

Escrow:

Introduction to 'Money Transfer via Escrow'