I am new to export and worried about fraud. What are the common scams in agri export and how can I protect myself.
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The most common agri export scams target new exporters. Watch for these: 1) Advance fee fraud, a fake buyer places a huge order then asks you to pay a registration, agent, lawyer, or customs fee to receive it, never pay any fee to a buyer. 2) Fake LC, a forged or unconfirmed Letter of Credit, always have your bank verify the LC and prefer a confirmed LC. 3) Quality claim fraud, after you ship on credit, the buyer falsely claims poor quality to cut the price or refuse payment, use independent pre-shipment inspection and clear quality clauses. 4) Bill of lading or document fraud where goods are released without payment. 5) Fake export agents who take a fee and disappear. 6) Bogus B2B leads and phishing emails. Protect yourself: verify every buyer in their country registry, use confirmed LC or advance, take ECGC cover, use a reputed CHA, and never send money to a buyer or pay to unlock a payment. If a deal feels too good and too urgent, it is usually a scam.
The quality claim trick happened to a friend. He shipped on credit, then the buyer suddenly said quality is bad and offered half price. Get pre-shipment inspection so you have proof.
Always verify the LC through your own bank. A fake LC looks real to us but the bank can tell. Never ship on an LC your bank has not confirmed.
If a stranger promises 50 containers in your first deal and rushes you, it is fake. Real trade builds slowly with small orders first.
Be careful of agents charging upfront to find you buyers. Some take the fee and vanish. Use APEDA meets and verified channels instead.