How to Avoid Export Scams?

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Today's topic is crucial, as it involves a practice that’s increasingly impacting the United States and other countries with the rise of technology and the ease of connecting globally: online scams!
Scams can target various sectors with the aim of gaining some advantage over others. Unfortunately, the U.S. ranks high among the countries facing frequent digital scams, with significant incidents of data breaches and cyber fraud.

To prevent these scams—which cause substantial financial losses to both individuals and companies—federal agencies like the Federal Bureau of Investigation (FBI) and Federal Trade Commission (FTC) are investing in new technologies to investigate, prevent, and prosecute offenders, aiming to curb the spread of such cases.

In the field of international trade, scams are prevalent, occurring frequently in both exports and imports. Today, our focus is to explain how scammers operate in exports and help you take steps to prevent such cases.

How Does an Export Work?

First, it’s essential for small exporters, or those planning to start exporting, to understand how exports work and the stages involved, as virtual negotiations, especially internationally, can be vulnerable to scams.

• Register with appropriate U.S. export agencies like the Bureau of Industry and Security (BIS);
• Research the markets you intend to export to, paying close attention to the specific requirements and regulations of each country;
• Familiarize yourself with Incoterms to determine the best terms for your transactions;
• Utilize tax incentives available to U.S. exporters to lower costs and increase profit margins;
• Focus on providing quality service to your clients, addressing any questions they may have;

How to Avoid Scams?

Now that we understand the primary steps in an export, here are essential tips to help you avoid scams and ensure that your products are exported safely:

Avoid Unnecessary Fees

One common scam many exporters face is when an importer requests a payment of fees to proceed with the export after receiving a sample, for example. Often, in the excitement of a potential sale, the exporter may pay, only for the supposed importer to disappear soon after. Be cautious, and remember that a legitimate importer will cover these costs if they genuinely want the goods.

Conduct Video Calls with Importers

If the conversation isn’t going smoothly, or you sense anything unusual, verify the importer’s identity through a video call. This step may deter a scammer, as they are often reluctant to reveal their identity and may abandon the scheme.

Beware of Urgency

International deals typically require time and due diligence, so be wary of importers who rush through negotiations or skip critical steps, as this can signal a scam disguised as an urgent transaction.

Select the Most Secure Payment Method

There are various payment options available in international trade, and it’s crucial to choose the one that best suits your needs. Certain payment methods enable banks to act as intermediaries, releasing funds only after verifying the shipment.

Look for Verification Seals

Many companies on our platform have a B2B Verified seal, which we grant following a series of checks to confirm their authenticity and reliability.

Additionally, we provide a comprehensive Safe Practices Guide to help you avoid potential scams. Check it out!

Boost your business credibility and connect with reliable buyers worldwide. Register your company now and join the largest B2B marketplace in the Americas.