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

Problem:

“I received an inquiry from a new buyer last month. He was interested in our products and wanted to know the prices. I asked him about the exact products he needed, quantity of products and destination port. Once I received the details, I calculated the price and sent him a quote. The buyer accepted the price and asked me to send him an invitation letter to facilitate the acquisition of a business visa because he wanted to visit our company for inspection purposes and to meet us personally.

An invitation letter was sent to him immediately, but his next message came as a shock that in his country an invitation letter merely from a company was not enough. He asked me to contact my local government to acquire an invitation letter from them as only it will be acceptable.

Acquiring an invitation letter from local government is a time-consuming process. However, to help the buyer, I prepared the documents and contacted the local government offices in Guangzhou. I managed to acquire it and sent it to the buyer. After he received the invitation letter, he disappeared and never replied to my emails again”.

Evaluating this Case:

Human Trafficking is a known crime and many illegal immigration rackets use import and export companies to send people to different countries. Some rackets may simply take money to send people abroad illegally, so these people can find jobs on their own. Whereas, some rackets, involved in human trafficking, send people and exploit them.

This is how a fraudulent company works:

They approach a supplier as a buyer and show interest in their products and visiting their company or factory for inspection and to personally get to know each other for better negotiations. To achieve this very purpose, they ask the seller to send an official invitation letter. After the buyer receives the invitation letter, he uses it to help an illegal immigrant get a visa and move abroad.

1. When you deal with a new buyer, it is highly advisable not to acquire an invitation letter from the government, because when a buyer enters your country, you will become responsible.

2. If you are dealing with a new buyer and you think he seems to be running a genuine company, then make sure you verify it before applying for an invitation letter from the government. Ask buyer to send you their company registration certificate and show you their company website. If they can't produce any evidence, simply stay away from them.

3. Find out the age of the buyer and their current position in the company. If you come across a buyer with a low position in company or young age, avoid getting an official invitation letter for them from the government.

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Related Case Studies:

Fraud Prevention: Case Study 1 - Tips for New Members

Fraud Prevention: Case Study 2 - Incorrect Details

Fraud Prevention: Case Study 3 - Even Suppliers Get Ripped Off

Fraud Prevention: Case Study 4 - Good Sample But Bad Order Production