Example 1 - obtaining samples fraudulently
When an unknown buyer requests samples while hinting at a large order, it is always wise to request at least a nominal payment for the samples. If the buyer refuses to pay the mailing costs, let alone the sample charge, you are advised to beware.

Example 2 - false promises leave the exporter with unsaleable stock
Swindlers often try to convince a supplier that they are about to place a large order on an L/C basis. They encourage a manufacturer to go into early production on their specifications, claiming that is a test and promising early payment. However, once production is complete the buyer goes back on his word, and the manufacturer is left with unsaleable stock. To avoid this type of situation, when commencing business with unknown buyers, it is safer not to agree to early production, no matter how enticing the offer may be.

Example 3 - demanding discounts by invoking spurious conditions in documentation
In order to create artificial conditions for refusing to accept goods or for reducing prices, some buyers deliberately include vague terms in the L/C and later claim an intentionally "UNPAID" clause. A variation is to place orders on L/C & D/A, but to withhold payment for the D/A part of the contract.

Example 4 - sending illegal job hunters disguised as buyers
Some company may send job seekers disguised as buyers. If you have any doubts, consider the age and position of the person. Very young or low ranking buyers should arouse suspicion. When groups of buyers are encountered, the credibility of the company should be thoroughly checked.

Example 5 - refusing payment for the second part of a shipment
After gaining the trust of an exporter in the first part of a deal by making immediate payment by T/T, the fraudster then refuses to pay for the second part of the shipment. When working on a T/T basis, once the shipment has been made, if the importer refuses to make the payment, there is no way for exporter to obtain the money. Therefore, if you think you're dealing with an unreliable partner, the T/T method should be used on a pro forma basis only.

Example 6 - uncollectable payment due to a financially unstable opening bank
When accepting an L/C from an unknown bank in an underdeveloped country, be sure to check the credibility of the bank. If there are any doubts about its financial condition, it is advisable to request confirmation of the L/C from a reliable bank.

Example 7 - refusing payment for goods received on credit by establishing a new company
Some importers deliberately shut down their existing companies and set up new ones in order to avoid payment, leaving exporters unable to collect money. If your partner suddenly changes his or her company's name and places a big order on credit, it is wise to check the company's legal status on the export contract and shipping documents.

Example 8 - commission fraud in exchange for a bigger order
Luring an exporter with the promise of a big order, dragging out the negotiations to keep him hooked, and then demanding a fee for brokering the deal at the last minute is another common type of fraud.

Example 9 - securing goods at discounted prices by delaying the payment
All transactions on credit should be avoided, no matter how small the amount. Even though an importer may not initially intend fraud, if the payment is delayed, the exporter may end up having to negotiate a discount in order to get paid, even though there is nothing wrong with the product.

Example 10 - 419 Scam Mail (Nigerian Scam Mail)
419 scam mail originated in Nigeria but now emanates from other countries, especially in Africa. The mail begs for help and offers a handsome return-typically over a million dollars-for the simple favor of using your bank account to transfer some money. Don't even think about responding-this is a scam of the worst sort.
Learn about other types of Internet fraud at http://www.scambusters.com