Exporters are attractive targets for fraudsters. Transactions are large, parties are in different countries, and communication happens mostly by email. Knowing how the common scams work is the best protection.
1. Business Email Compromise (Changed Bank Details)
How it works: fraudsters gain access to an email account — yours, your buyer's, or an intermediary's — or create a lookalike domain. They watch conversations, then send a convincing message: "Our bank details have changed; please send payment to this new account." The buyer pays the fraudster, and you are not paid.
The same trick can be played on you — for example, a fake message from your supplier asking you to pay a new account.
Protection:
- Put your bank details on your proforma invoice and tell buyers they will never change by email alone
- Verify any change of bank details by phone, using a number you already have — not one in the email
- Use strong passwords and two-factor authentication on email
- Watch for lookalike domains — a single changed letter
- Train staff to treat any bank detail change as a red flag
2. Fake Letters of Credit
How it works: you receive what looks like an LC — often a PDF — from a buyer. It is fake, or issued by a non-existent bank. You ship goods expecting payment that will never come.
Protection: only rely on LCs advised to you through a bank, which authenticates them. Never accept an LC sent directly by the buyer as proof of payment. See letter of credit explained.
3. Advance-Fee Buyer Scams
How it works: a "buyer" offers a large, attractive order. Before it can proceed, you must pay for registration, a licence, legal fees, inspection, or an "import certificate" through their contact. Once you pay, the buyer disappears.
Protection: genuine buyers do not ask suppliers to pay them — or their nominated agents — to release an order. Treat any request for fees as a scam until proven otherwise.
4. Overpayment Scams
How it works: the buyer "accidentally" pays more than the invoice and asks you to refund the difference — often to a third party. The original payment later bounces or is reversed, and you have lost the refund.
Protection: never refund overpayments until funds are fully cleared and confirmed by your bank, and only refund to the original sender through the same channel.
💡 Urgency is a warning sign
Most scams create pressure — "Ship today or we lose the order", "Pay the fee within 24 hours". Legitimate buyers understand that verification takes time. When you feel rushed, slow down.
5. Fake Buyers and Identity Theft
How it works: fraudsters pretend to be a well-known company, using its name and logo with a slightly different email domain or phone number. They order goods on credit terms and have them shipped to an address unrelated to the real company.
Protection: verify the buyer independently — contact the real company through details on its official website or registration records, and confirm the delivery address belongs to them. See how to qualify a buyer.
6. Goods Collected Without Payment
How it works: the buyer collects goods using a telex release or copies of documents, then fails to pay.
Protection: keep control of negotiable bills of lading until payment is secured, and never surrender a B/L before being paid. See bill of lading explained.
7. Sample Harvesting
How it works: "buyers" request free samples from many suppliers, with no intention of ordering — sometimes to resell samples or copy designs.
Protection: charge for samples or courier costs, and qualify buyers before sending custom samples. See product samples for international buyers.
Build a Simple Fraud Checklist
Before any first shipment, confirm:
- The buyer's company is verified independently
- Payment method is secure for a new buyer
- Bank details were confirmed by phone
- LCs came through a bank
- The delivery address matches the buyer
- No fees are being demanded from you
If You Suspect Fraud
- Stop the shipment or payment if possible
- Contact your bank immediately — speed matters in recalling transfers
- Keep all emails and documents
- Report to the relevant authorities
Frequently Asked Questions
How do I know if an international buyer is fake?
Warning signs include free email addresses, unverifiable company details, requests for fees from you, urgency, unusual payment methods, and delivery addresses unrelated to the company. Verify independently before shipping.
What is business email compromise?
It is a scam where fraudsters access or imitate email accounts to send fake instructions — typically changing bank details — so payments are sent to their accounts.
Can a letter of credit be fake?
Yes. Fake LCs are a known fraud. Only rely on LCs advised through a bank, which verifies their authenticity.
Want Safer Terms on Your Next Deal?
Hexaco Global helps exporters structure quotations, payment terms, and documentation so deals close without putting your cash at risk. Tell us about your buyer — we reply within 24 hours.
Talk to Our Team →