Letter of Credit Fraud: Fake Documents

A fraudulent exporter can obtain your money bypapers which are supposed to be sent to the bank.
using fake shipping documents.Check them carefully. Most of the shipping lines have
A common L/C scam: a fraudulent seller sends fakeonline tracking system, where by entering the container
shipping documents to the opening or advising bank tonumber you can see when the cargo actually left the
prove that the goods were shipped. In fact, the goodsport and to which destination. If all looks acceptable,
never left the sellers warehouse or, more likely, neverask the seller to issue the originals and send copies to
existed at all. Other documents like the invoice, packingyou by fax or e-mail. By B/L number you can always
list, export declaration, even Certificate of Origin can betrace any shipment.
easily produced by the scammer. In many L/Cs theIt is a good idea to ask your bank (opening bank) to
only documents needed for the L/C to be paid are thesend you the copies of the documents received. You
invoice and shipping documents. If the seller’s bankcan check them before the bank pays the seller.
believes that the papers are authentic and pays theYou can include other papers to be presented to the
scammer, the buyer will never see the goods and willissuing bank: inspection reports issued by an
spend much time in discussions with his bank.independent inspection company, all kind of documents
How to protect yourself?issued by the official organisations of the exporting
Always ask the seller to fax you the drafts of all thecountry etc.