TradeSafe Tips

SAFE TRADING TIPS

Trade with confidence

Importers.com is committed to powering global business. To make your trading experience safe and simple, we provide as much information as possible about potential buyers and sellers.

We want you and your trading partners to make informed business decisions. Trade Safe Tips are designed to help you take advantage of Importers.com to identify trading partners that are professional and trustworthy. In addition to reading the information below, TradeStaff have published information from the Internet Fraud Complaint Center on preventing online fraud.

Business is about people

Learning more about your trading partner is a critical part of business decisions. In global trade - especially online import and export - there is little room for error in choosing a trustworthy supplier or relying on a credible buyer.

The vast majority of internet introductions result in a successful partnership which generates profit for both the importer and exporter. Nevertheless, it is important that you protect yourself from the unlikely possibility of fraud that may occur, due to the concealment of a partner's true identity and/or intentions.

There are a number of actions you can take to research your potential business partner whom you have met on the internet, so that you can reduce the risk of being subject to a fraudulent transaction or business misunderstanding. Before you trade, please review our Trade Safe Tips.

If you suspect fraud...

There are several actions you can take if you suspect an Importers.com member of fraud:

1. Contact the member and arrange a telephone call or face-to-face meeting. This usually resolves the situation. Most buyers and sellers are honest and dependable and problems may simply be a matter of misunderstanding due to language or cultural differences.
2. If you suspect your potential partner of fraud, we recommend that you inform law enforcement authorities.
3. You should also report to Importers.com any suspected abuse of our website by members, so that we may review the status of the member's account. Simply log in, then click Contact Us and describe the situation.

TRADE SAFE TIPS

1 - Know Your Trade Partner

Check the credentials of potential partners before engaging in business. The easiest way to determine whether a potential trade partner is safe and trusted, is through our Trust Certification icon.  If a company is willing to spend the extra money to be audited by a respected third-party identification system, it is reasonably safe to assume that he or she is serious about the trade offer.

Additionally, be sure to verify contact information of all potential partners before engaging in any business over the internet. Always confirm if the address, phone number, and email address given to you by your trading partner belongs to the same company.

It is always advisable to contact the potential partner by telephone prior to the exchange of goods, money or contracts. If a trader provides inconsistent contact details, for example an address in Nigeria and phone number from another country, we recommend that you look up the address in the local phone directory to obtain the phone number. Call this number to confirm that the person you are in touch with actually works for the company. Be suspicious of any trader who uses only an e-mail address and cell phone and is reluctant to reveal a telephone number.

You can also request that your trading partner undergoes our Trust Certification. As part of this certification, we perform background checks from independent third-party sources, including searching against known criminal lists, fraud databases, and deceased databases. You may also conduct a background check yourself. In many countries the existence of a company and its legal status is a matter of public record. You can check the backgrounds of established manufacturers or wholesalers with trade institutes, local or online credit agencies, or online services.

Check with the company's registry in the partner's country to ensure that the company exists with a valid registration. If you cannot get independent access to the trader's registration information, ask your partner to provide you with a Certificate of Good Standing issued by the company’s registry of his country or state/province.

You can also gain further knowledge about your partner by ordering a credit history report from a local credit agency. Credit history reports contain information about the partner's business history in their relationships with banks and other trading partners.

Unfortunately, few resources are available to verify the legitimacy of newly established businesses. Be especially careful when dealing with new businesses.

Finally, whenever possible, meet your business partner in person and visit the company's facilities. Video-chatting with them will help, as well.  The internet may provide extensive information on your potential partner, but there is no substitute for face-to-face contact.

2 - Prepare a Clear Contract

You should prepare a legally binding trade contract and keep it for the specified period to prevent argument and be sure in advance, the terms of the sale. The contract should include sales conditions, payment method, an arbitration clause, product specifications, quality inspection, etc. Stay in frequent contact with business partners.

3 - Protect Yourself Against Payment Risk

Using a Letter of Credit (LC or L/C) or escrow are the recommended payment methods. Importers.com has partnered with Escrow.com and strongly encourages all members to use their services to process payments. If the seller seems more focused on payment than any other issue, or indicates that cash payment must be made urgently, more caution should be given to the transaction. Be extra cautious when the seller asks you to send money to an account whose real owner cannot be traced.

• Letter of Credit (L/C)
  A Letter of Credit is the most preferred payment method in international trade. However, there is some possibility of fraud due to incorrect or forged shipping documents. Minimize the potential for fraud by contacting the L/C issuing bank. Be sure to check the L/C number, opening date, opening place, name and address of the issuing bank, shipping date, valid date, loading and unloading port, applicant, period of presentation, amount, as well as details of trans-shipment, partial shipment, etc.
• Escrow
  Escrow.com is a transaction settlement service used by many of the leading e-commerce websites, including eBay and others. Escrow.com acts as a secure third party to protect Buyers and Sellers.
• Avoid Telegraphic Transfer (T/T) payments
  Importers: It is NOT wise to accept an overseas supplier's request for pre-payment. In most cases, a request for T/T payment involves attempted fraud. Exporters: It is NOT wise to agree to accept payment from an overseas buyer after they have received products. Once a buyer has received samples or products without payment, it is very difficult to get them back.
• Avoid Payment by Western Union
  Many of the online fraudulent cases reported involve payment via Western Union. After a buyer sends funds, the receiver breaks contact and the party disappears. You cannot trace the real name of an account holder with a wiring service such as Western Union.

4 - Don't Expect or Send Free Samples

Exporters: Request a nominal payment for samples. When an unknown buyer requests samples while hinting at a large order, it is always wise to request at least a nominal pre-payment. Importers: Request samples to check the quality of product. Order a sample before committing to a significant purchase order to be sure that the product meets your requirements. Be prepared to pay for samples - including shipping costs.

5 - Avoid Shipping Risk

If you are a buyer, you can protect yourself against poor quality by ordering a pre-shipment inspection of the products. You can demand the inspection as a condition to payment. Pay close attention to shipping or contact addresses located in countries with a high reported incidence of online fraud and many e-commerce web sites have found a high incidents of on-line fraud as well, such as Nigeria, Benin, Togo, Macedonia, Colombia, Romania, etc.

6 - Be Wary of Over Generous Offers

Be wary of potential partners who offer an especially high or low price. It is easy to be tempted by such offers, but they are often attempts to defraud. In business, the expression "you get what you pay for" is often painfully true. Be especially diligent to check the contact information, identification and any claims a suspicious trade partner makes. If it sounds unbelievable, it probably is.

PREVENTING INTERNET FRAUD

Internet Crime Complaint Center (IC3)

The IC3 is a partnership between the United States Federal Bureau of Investigation (FBI) and the National White Collar Crime Center (NW3C). The information presented below was taken directly from the IC3 website: www.IC3.gov.

The mission of the IC3 is to combat fraud committed over the Internet. The organization strives to:

• Develop a national strategy to address fraud over the internet
• Collect, manage and disseminate fraud complaint information to aid preventive and investigative efforts
• Provide law enforcement and regulatory agencies with analytical data to identify and address new fraud trends and help stem the rise of Internet fraud
• Provide a mechanism for reporting fraud on the Internet
• Ensure that Internet fraud complaints are directed to the appropriate law enforcement and regulatory agencies.

If you’re inexperienced with online trading, you may want to print off the following pages to help guide you along any potential business transactions or encounters:

Business Fraud

• Purchase merchandise from reputable dealers or establishments.
• Try to obtain a physical address rather than merely a post office box and a phone number, call the seller to see if the number is correct and working.
• Consider not purchasing from sellers who won't provide you with detailed contact information.
• Purchase merchandise directly from the individual/company that holds the trademark, copyright, or patent.
• Beware when responding to e-mail that may not have been sent by a reputable company.

Non-Delivery of Merchandise

• Make sure you are purchasing merchandise from a reputable source.
• Do your homework on the individual or company to ensure that they are legitimate.
• Try to obtain a physical address rather than merely a post office box and a phone number, call the seller to see if the number is correct and working.
• Consider not purchasing from sellers who won't provide you with detailed contact information.
• Check with the Better Business Bureau from the seller’s area.
• Check out other web sites regarding this person/company. Don’t judge a person/company by their web site.
• Be cautious when responding to special offers (especially through unsolicited e-mail).
• Be extra cautious when dealing with individuals/companies from outside your own country.
• Inquire about returns and warranties.
• Make sure the transaction is secure when you electronically send your credit card numbers.
• Consider utilizing an escrow or alternate payment service.
  

Credit Card Fraud

• Don't give out your credit card number(s) online unless the site is a secure and reputable site.
• Sometimes a tiny icon of a padlock appears to symbolize a higher level of security to transmit data. This icon is not a guarantee of a secure site, but might provide you some assurance.
• Don't trust a site just because it claims to be secure. Before using the site, check out the security/encryption software it uses.
• Make sure you are purchasing merchandise from a reputable source.
• Do your homework on the individual or company to ensure that they are legitimate.
• Try to obtain a physical address rather than merely a post office box and a phone number, call the seller to see if the number is correct and working.
• Consider not purchasing from sellers who won't provide you with detailed contact information.
• Check with the Better Business Bureau from the seller’s area.
• Check out other web sites regarding this person/company. Don’t judge a person/company by their web site.
• Be cautious when responding to special offers (especially through unsolicited e-mail).
• Be extra cautious when dealing with individuals/companies from outside your own country.
• Make sure the transaction is secure when you electronically send your credit card numbers.
• You should also keep a list of all your credit cards and account information along with the card issuer’s contact information.
• If anything looks suspicious or you lose your credit card(s) you should contact the card issuer immediately.

Investment Fraud

• Don't invest in anything based on appearances.
• Just because an individual or company has a flashy web site doesn't mean it is legitimate. Web sites can be created in just a few days. After a short period of taking money, a site can vanish without a trace.
• Don’t invest in anything you are not absolutely sure about.
• Do your homework on the investment to ensure that it is legitimate.
• Do your homework on the individual or company to ensure that they are legitimate.
• Check out other web sites regarding this person/company. Don’t judge a person/company by their web site.
• Be cautious when responding to special investment offers (especially through unsolicited e-mail).
• Be extra cautious when dealing with individuals/companies from outside your own country.
• Inquire about all the terms and conditions.
• If it sounds too good to be true it probably is.

Nigerian Letter Scam

• Be skeptical of individuals representing themselves as Nigerian or foreign government officials asking for your help in placing large sums of money in overseas bank accounts. (TradeStaff: More recently, this SCAM letter format has been used by individuals from Benin, Ghana, Pakistan, Russia and other countries - none are to be trusted).
• Do not believe the promise of large sums of money for your cooperation.
• Guard your account information carefully.