This action might not be possible to undo. Are you sure you want to continue?
International trades between countries and across continents have existed for centuries including previous civilizations. Traditionally international trade consisted of traded goods like textile, food items, spices, precious metals, precious stones, and objects of art and various items across the borders. Everybody has heard of the silk route as well as amber road and other famous routes that existed and the ports and settlements that flourished due to the trade, which was carried on through land route as well as sea routes. We have come a long way since the earlier times and International trade today has taken on new dimension. It was a fact earlier that impact of trade between two countries was not limited to economics alone, but fuelled political, social ambitions too. Today with the advancement of technology and impact of globalization has made it necessary for all countries to engage necessarily in international trade for their survival. Various factors including but not limited to industrialization, development of transportation, globalization, technology that enables trade and communication has contributed to change in the format of business organizations as well as trade practices. Companies and Organizations today are no longer entities with a local identity. Multi national organizations have emerged through the previous century with footprints all over the globe. They have in fact shrunk the earth and changed the way businesses are conducted. Companies no longer limit themselves to local markets. They no longer depend upon local resources. These companies setup manufacturing wherever it is conducive in terms of cheaper resource availability as
well as support from local government and in terms of markets, geographical boundaries do not bother them. They are present everywhere. Technology in terms of communication as well as software technology has changed the way business organizations manage activities be it manufacturing, procurement, finance or sales. Today software applications drive the processes and work at the speed of thought. In present scenario, no country can afford to remain isolated from and not participate in globalization. While countries do open their economies to global competition, they need to tread very carefully not to upset their domestic economy and protected industries. This balancing act is often managed through individual countries trade and tariff policy, which forms a part of each countries foreign trade policy that governs its approach to international trade and commerce. Post Second World War, World Trade Organization has been playing major role in facilitating and attempting to streamline the global trade and tariff structures with an aim to move towards free trade. However in reality, free trade may just be a dream as long as there is no parity between developed and developing economies. Today most of the countries are party to several bi-lateral as well as multi lateral tariff and trade agreements like GATT — General Agreement on Tariffs and Trade though which they regulate imports and exports to and from specific countries. In the last few decades we have seen the emergence of services export and imports and it is continually growing. Developing countries are harnessing their intellectual capital to provide software services to the developed countries. Today’s international trade has many more new dimensions like intellectual property, a variety of services, trade related investments, Bilateral and Multilateral Trade Agreements, Establishing terms for trade in services, investments as well as creating climate for dispute settlement.
Managing International trade has multi dimensional aspects. Any political. We have seen the impact of recession in one country affecting across the globe. economic or other events anywhere in on the earth have an impact on each countries international trade. We have also seen impact of financial markets crash in one country having ripple effects all over the world. which need to be considered by each country. .
more traders are driven to frauds for survival. Syndicate crimes and franchisee crimes are becoming more and more popular. with a new fraud found in every six months. It becomes increasingly difficult to prevent frauds. It affects traders through loss of cargo. diversion of cargo. Some examples of the various scams happening in the international market are explained further. With the advancement in communication technologies. Corporate communication effectiveness and coordination will also suffer after amalgamation. This is particularly so during the economic depression period. With increased competition globally and escalating cost of doing business. and money laundering. Fraudsters are more professional and creative. scuttling. charter-party fraud. The types of fraud vary from documentary fraud. which are so common nowadays. as well as the cost to final consumers. LBO and re-structuring. counterfeiting.INTERNATIONAL TRADE FRAUD As international trade is getting more and more complex and diversified. International trade fraud is an incident of international commercial transactions. increased insurance premiums and shipping expenses. This has created a very favourable environment for the fraudsters. practitioners find it difficult to grasp all the sophisticated new technologies and up-to-date information. . international trade frauds have developed into a more sophisticated operation. fraudulent insurance claims.
The multi-stage fraud starts when you receive a scam fax. e-mail or letter such as these examples: Nigerian Advanced Fee Fraud Email Scams Lagos. Nigeria. executed. business and professional men who would never be as easily deceived by a lottery scam. alone. Estimates put the losses from these "Nigerian Advance Fee" operations at over $1 million "every single day" in the U.West African Scam / Nigerian Advance Fee Fraud in Internet Web Mail Frauds and Email Letter Scams This particular scam targets middle class. The above sum resulted from an over-invoiced contract.S. commissioned and paid for about five years (5) ago by a foreign contractor. Confidential Business Proposal Having consulted with my colleagues and based on the information gathered from the Nigerian Chambers Of Commerce And Industry. This action was however intentional and since then the fund has been in a suspense account at The Central Bank Of Nigeria Apex Bank.000. It is important to inform you that as civil servants. Attention: The President/CEO Dear Sir. five hundred thousand United States dollars) into your accounts.00 (forty seven million. middle age.500. we are forbidden to operate a . We are now ready to transfer the fund overseas and that is where you come in. I have the privilege to request your assistance to transfer the sum of $47.
comprehensively what we require of you. USA Dear Sir: . I am an accountant with the Nigerian National Petroleum Corporation (NNPC). that is why we require your assistance. telephone. If you find this proposal acceptable. 25% for you and 5% for local and international expenses incidental to the transfer. The total sum will be shared as follows: 70% for us.foreign account. Alternatively we will furnish you with the text of what to type into your letterheaded paper. (b) your private telephone and fax numbers —for confidentiality and easy communication. we shall require the following documents: (a) your banker's name. The transfer is risk free on both sides. (c) your letter-headed paper stamped and signed. along with a breakdown explaining. Please reply urgently. account and fax numbers. The business will take us thirty (30) working days to accomplish. Nigeria 01-658-21-2658 TO: CEO Everytown. Best regards Howgul Abul Arhu FROM: Dr Altaka Yurmani Central Bank of Nigeria Lagos.
Yours truly. We suggest that you meet with us in person in Lagos. you must presently be a depositor of at least US$100. and attempt to levy certain depository taxes on it. because of certain regulations of the Nigerian Government. the Nigerian National Petroleum Company would agree to allow you to retain 10%. however. we would be most grateful. as well as with certain officials of the Central Bank of Nigeria. to be a legitimate transferee of these moneys according to Nigerian law. The Nigerian National Petroleum Company is desirous of oil exploration in other parts of the world. Time is of the essence in this matter. You assistance is requested as a non-Nigerian citizen to assist the Nigerian National Petroleum Company. The contracts have immediately produced moneys equaling US$40. then you can forward the funds as directed by the Nigerian National Petroleum Company. very quickly the Nigerian Government will realize that the Central Bank is maintaining this amount on deposit. and that during your visit I introduce you to the representatives of the Nigerian National Petroleum Company.000 in a Nigerian bank which is regulated by the Central Bank of Nigeria. in your United States account. in moving these funds out of Nigeria. In exchange for your accommodating services. However. If it will be possible for you to assist us. The Nigerian National Petroleum Company has recently concluded a large number of contracts for oil exploration in the sub-Sahara region.I have been requested by the Nigerian National Petroleum Company to contact you for assistance in resolving a matter.000. If the funds can be transferred to your name.000. and also the Central Bank of Nigeria. Please call me at your earliest convenience at 18-467-4975. or US$4 million of this amount. Prince Alyusi Islassis . it is unable to move these funds to another region.
Written almost always in all capital letters reminiscent of older teletypes even . The letter." rather than a specific name.Blueprint for a Nigerian Advance Fee Fraud Scam This is a five billion US$ worldwide scam which has run since at least 1989 under successive Governments of Nigeria. Church officials are also being specifically targeted with uniquely worded offers of charitable bequests. Many are addressed to "president" or "CEO. they have progressed on to faxes. exotic stamps. The common thread is that the initial letter sets the stage and is the opening round of a scheme within a scheme. then e-mails. the scam has now expanded to include the average citizen due to the low cost of email transmission in relation to potential gains. is unfortunately growing in its effectiveness and reach. They are marked "urgent" and "confidential. while appearing transparently bogus and even ridiculous to most. fax or e-mail from an insider or alleged "official" representing a present or former foreign government or agency. Historically mailed out. Initially targeting businessmen. The following characteristics may be found in these letters. sympathy. or assurance of origin. It is also referred to as "Advance Fee Fraud" and "419 Fraud" after the relevant section of the Criminal Code of Nigeria. If mailed to you it will have foreign. Official Notification You first receive a letter." They may contain spelling mistakes and grammatical errors which give you a sense of intellectual superiority.
460.000 USD ( Thirty-two million. (NNPC)." an auditor or accountant with strong ties to Nigerian officials a religious figure such as a Deacon. Ministry of Finance. the Federal Tenders Board. invariably in the tens of millions of dollars. aide or confidante of a deposed leader a Nigerian businessman or lawyer with an impressive title such as "Chief". Brother. the International Remittance Department. OMPADEC (Oil Minerals Producing Area Development Commission) etc. Ministry of Aviation. your honesty and business acumen. Nigerian royalty or a political insider such as "the son of the President of Nigeria" or a "Nigerian prince or princess" the spouse. Nigeria Export Promotion Council (NEPC). is also written out in text form.e. the Audit Bureau Department of the Nigerian National Petroleum Corp. The dollar amounts to be transferred. ie $32. "Barrister" or "Dr. four hundred and sixty thousand United States Dollars ) They say you have been recommended for. the Ministry of Trade and Industry. Pastor The Opportunity of a Lifetime . or they have verified.though currently e-mailed. Nigerian Petroleum Resources Ministry Headquarters. relative. The Exalted Sender The sender may claim to be one of the following: a senior civil servant from a department in one of their Ministries i.
O. of goods or services) Conversion of hard currency or money laundering Sale of crude oil or other commodities at below-market prices Transfer of accounts of now defunct companies Require money for chemicals to "clean" large amounts of marked currency Purchase of real estate Deposed Leaders and their families and associates Over-invoiced contracts and government employees ( NNPC. diamonds ) out of the country Gifts or bequests to charitable or religious organizations . wills and inheritances. Trade deals Assistance getting stolen assets ( cash. death-bed claims of wealth. medical equipment. Central Bank of Nigeria ) Forgotten accounts.New variations of the scheme are being developed all the time but the most common forms of these fraudulent business proposals fall into these main categories: Transfer of funds from "over-invoiced" or "over-estimated" contracts relating to resources. Turn Around Maintenance ( TAM ) or infrastructure Assistance escaping the country with accumulated wealth (bribe money / graft ) Efforts to defraud government on "forgotten" or "former regime" accounts Contract fraud (C.D.
However. it's at least worth the phone call or e-mail to check it out. So you make the call and actually talk to the writer who begs you to keep this proposal a secret because he is personally taking quite a risk and fears discovery of his involvement. Singular Good Fortune Unfortunately. a large number of victims are enticed into believing they have been singled out from the masses to share in multi-million dollar windfall profits for doing absolutely nothing. He reiterates its top secret . there is a perception that no one is prone to enter into such an obviously suspicious relationship. in exchange for 10-30% of millions of dollars. Lagos Confidential He emphasizes the confidential nature of the transaction with emphasis that any disclosure risks the completion of the transfer of funds. And figuring that if there is no risk to you.Scholarships Lottery winnings Relative killed in World Trade Center left a fortune Bogus job offers with rebate of wage overpayment using third party checks Inflated and expense-paid offers to buy and ship your used vehicle to Nigeria A Sense of Urgency There is always a sense of urgency attached to the proposal. even though you are extremely skeptical. A government audit in the near future will close the window of opportunity or the job of the person able to transfer the funds is in jeopardy.
usually successful. addresses. . the Nigerian National Petroleum Corporation and your newly-appointed Nigerian lawyers the firm of Takurmani & Ruhn. The paperwork may also be used to forge letters of recommendation to other victim companies in the future and to seek out travel visas from the American Embassy in Lagos for individuals wishing to escape the impoverished country. Upon approval. Authenticity Soon documents arrive by courier crowded with legal stamps and officialdom from the Central Bank of Nigeria. The most likely thing to happen at some point. illegal you agree to keep quiet about it on your end. They say these will be used to show completion of the multi-million dollar "contract" which will be submitted for approval to the Central Bank of Nigeria. One other purpose is to secure legitimate identification and account information in furtherance of their extensive and highly successful check fraud schemes. telephone and fax numbers. Banking Information The signatories of the letters claim to be acting as middlemen and request that you supply three signed and stamped blank company letterheads and blank invoices together with bank details such as account numbers. This involves having nomadic scammers open business accounts across the country using fake or stolen identification then cashing bogus checks. regarding this account.nature and implies a tax free status if undiscovered. Knowing that it is likely. the funds will be remitted to your account. which they deposit. to have you deposit a check of foreign origin as an inducement to have you provide a share of certain expenses. is an attempt. if not certainly. and move on before being discovered or apprehended.
Either initially or eventually you must provide further fees and payments. storage or release fees by a Security Company gifts. cable and communications fees a variety or processing. if you choose not to come there in person. transaction fees or bribes demurrage. usually by wire transfer.Recently Nigerian rings have been opening investment accounts within various brokerage houses and depositing large sums of money with stolen and counterfeit corporate checks. licensing or registration fees advance fees. the brokerage firm has borne the loss. Some Requirements Arise Upon receipt of the requested documents. Your initial contact person is most apologetic. transfer taxes. . performance bonds By now you have become the primary supporter of the scheme and will willingly contribute a progressively larger amount of money whenever the deal is threatened by demands for a proportionate sharing of payments for various 'taxes' and 'fees' supposedly to facilitate the processing and remittance of the alleged funds. for various taxes and expenses to consummate the transaction such as: export or insurance fees to help move the money safely to foreign bank accounts attorney fees. but not surprised by the greed of the attorneys and the government and bank officials. you are then politely asked to transfer money to pay for newly-discovered transfer taxes and contract fees demanded by the Central Bank of Nigeria and fees for the attorneys acting on your behalf. tender fees. often totalling millions of dollars. things not within his control. In a number of cases.
Britain. Canada. Japan and other African countries with the assistance of confederates within West Africa. United States. During the visit you are introduced to the Nigerian "government officials" who can "approve" the transfer. Spain. You are likely asked to put down a small deposit to show "good faith" and help to defray some of the expenses of your gracious hosts. The term "Nigerian Advance Fee Fraud" is. An Intermediary Expatriate Nigerians operate from cells in the Netherlands. with both victims and offenders being located across the globe. therefore. adding an even greater international scope and credibility to the operation.Each fee that is paid is described as the very last required but invariably "oversights". Come See For Yourself You may be invited to visit Nigeria and meet with your fellow conspirators before finalizing the transfer of funds or the payment of your major advance fee if you balk at sending it without more proof of legitimate illegitimacy. The collection of these 'advance fees' is the real objective of the scam. "errors". "complications" or "temporary difficulties" are discovered. . This factor also draws in victims who are apprehensive of traveling to Africa but will make a short-haul flight to a predominantly white and stable country but where he is still out of familiar surroundings and more likely to overlook unorthodox business methods. Hong Kong. only partially accurate and the problem is truly one of international dimensions. which include bribes to the proper authorities. necessitating additional payments and delays which allow the process to be stretched out over many months until you either run out of money or gullibility. They may claim to be a clearing house bank for the Central Bank of Nigeria.
Dr. He cleans the notes until the stamps disappeared. It would be up to you as the beneficiary to come up with another $280. Lurking Dangers Whether you accept their initial invitation or travel to Nigeria in an attempt to recover your money you are told that a visa will not be necessary to enter the country. and usually final "black money" stage. Then you are told that unfortunately the National Bank of Nigeria has forgotten to supply the security company with the adequate quantity of chemicals to cleanse the entire $25 million. . After the documents were signed. your illegal entry may be used as leverage to coerce you into releasing additional funds to them. this is known as the Wash-Wash stage. John Edward and George Chidera came back with a security officer and an aluminum case full of US$ bank notes bundled in plastic and covered in a white powdery substance. the next. He was told that the procedure was introduced by South Africa during the apartheid regime to avoid the international boycott on weapon deals by physically transporting big cash amounts. for another five litres of the cleansing chemical.000. They may then bribe airport officials to pass you through Immigration and Customs.Marked Currency After that. Because it is a serious offense in Nigeria to enter without a valid visa. It was explained that all notes marked with numbers are to be cleansed by a chemical emulsion. by taking out five bank notes from the container and pouring the chemical liquid in the sink. of classic 419 moves began to unfold. In 419 parlance. The trickster then demonstrates the process.
Unsuspecting victims are intimidated. though one American was murdered while pursuing his lost money and numerous other foreign nationals have been reported as missing.If your desire to pursue it wanes you are then pressured or threatened to provide one or more large sums of money to save the venture. Other problems which plague investigations of this nature are bank confidentiality and the fact that courts are less likely to empathize with victims if greed was the motivation for falling for the scam in the first place. victims from Nigeria. They are often reluctant to cooperate with police because they believe that they could be prosecuted. U. In one month alone.S. either in their own country or in Nigeria and may also fear reprisals being directed against them by the organized criminals involved. Recourse In all likelihood.S. prosecutions are difficult to institute. . agents extricated seven U. Surprisingly. such warnings occasionally go unheeded. so convinced are the victims that the deal is genuine. The scheme has continued unabated and cases emanating from Japan are now being reported. Under an awareness program. in the summer of 1995. Secret Service agents have been assigned on a temporary basis to the American Embassy in Lagos to locate and rescue potential victims. The Nigerian Federal Police have set up a special unit to investigate the scheme but due to the reluctance of victims to travel to Nigeria. federal authorities have even gone to airports and convinced victims with thousands of dollars in their possession not to embark on flights that would have eventually placed them in harm's way. stripped of their money and sometimes even killed. there are many people who do not report their losses to authorities due to either fear of implicating themselves in a fraud being committed on the government of Nigeria or because of the embarrassment from being deceived.
Interpol has now extended its surveillance to these countries. some of the perpetrators are now operating in the nearby Republic of Benin.S.S. Nigerian Letter Scams constituted the third biggest consumer fraud on the Internet. under its mandate to protect U. Last year. posing as Nigerian government officials investigating the fraud in a so-called attempt to get the victims' money back. learning institutions and government departments. has since 1995 been working with the U. newspapers. businesses. about 80% of which now come by e-mail.S. trailing auctions and the sale of merchandise. In the past three years. Nigerian Recovery Scams Reports received by INTERPOL indicate that the criminals are becoming so brazen and confident that they are contacting earlier victims of the fraud. and Burkina-Faso where foreign nationals now fly into in compliance with the directives of their Nigerian invitees. Ghana. and Nigerian and other foreign authorities to try to counter the operations. Department of Commerce. while alerting their counterparts about the activities of the fraudsters. The Secret Service. Accordingly. . charities. They obtain the names of potential victims from a variety of sources including trade journals. professional directories.In a bid to outsmart Nigerian police surveillance. victims who have come forward state they have been swindled out of $100 million. The Victims These operations target individuals. the U. according to the National Consumer League. Then. They indicate that they get 13. which range from the crude to quite sophisticated.000 complaints a month from people who have received the dubious solicitations. according to the Secret Service. but as most fraud victims are too embarrassed to come forward this figure likely represents a tiny fraction of the actual losses. currency and financial institutions. request payment of an up-front fee.
to hundreds." and "God himself has directed me to you" he also claims to work for the board of customs in his country and reports that his department made a huge profit last year.000. he also promises to send $1. your business is contacted by a company from Nigeria which is extremely interested in purchasing your products. All you need to do is to fax him the bank account number where you would like to receive it. of thousands of dollars and are currently estimated at over $1 million per day in the U. but rather send out mailings en masse.S. God Sent Me A letter is arriving in Utah mail boxes purportedly from a Mormon living in Africa. They promise the prospect of large orders and request samples of your products prior to approval of the big order. A spokesman for the National Criminal Intelligence Service (NCIS) estimated that £150m is lost to the UK economy every year through this kind of scam. They do not target a single company. . "my brother. The sender claims to belong to a Latter Day Saints family that is being persecuted and humiliated because of their beliefs. Your name was gleaned from a trade magazine. Using phrases like. Not only does he promise to spend 50% of that profit to "support Mormonism" in his country.5 million dollars to you. Because it is businessmen and organizations which are targeted. the losses per incident can range from tens.and commercial libraries. Before you can begin shipping these large orders they have you send in bogus registration or import licensing fees. alone. Keep The Orders Coming Like many others. In the UK the average victim is conned out of more than £50.
Embassy officials say that 50% of all Federal Express. as well as letters of credit. then wham. . seals and logo.They send you back numerous documents with official looking stamps. and DHL shipments to Nigeria are returned because of fraud and theft. They stress the urgency of their need and ask that you pre-prepare a large shipment for delivery and send it immediately upon receipt of their bank draft. UPS. They cleverly start with small orders using proper drafts to lull you. before you realize they have given you a worthless forgery for payment. This supporting documentation adds veracity to their claims of legitimacy. you are hit with a big loss when your order is shipped and long gone. payment schedules and authentic bank drafts for smaller orders.
then sends each on to the intended recipient. The bogus escrow scam is popular on eBay. In fact. The scammer blames the escrow service. a scammer sets itself up as the recipient of money or goods and then requests the use of an escrow service which is. . several legitimate and licensed escrow companies do exist. both parties send their items to the escrow service. which holds them until both items are received. the ruse may be believed. selfoperated. This bogus escrow service assures the victim that the scammer has sent its item and that the victim should send its item to the escrow service. Rather than sending money or goods directly to the other party (which is insecure. Escrow services are intended to ensure security by acting as a middleman in transactions where the two parties do not trust each other. In the bogus escrow scam. as one or the other party must send its item first. If either party fails to deliver its part of the deal. if the victim did not investigate the escrow service before using it. at the risk that the other party may not reciprocate). who then immediately closes down the escrow service and does not send its item to the victim. The rise of Internet escrow has led to a dramatic increase in bogus internet escrow companies.ESCROW SCAM The bogus escrow scam is a straightforward confidence trick in which a scammer operates a bogus escrow service. where escrow services are often used for high-value transactions. in fact. claiming that the item was with it at the time it closed down. this amounts to sending the item to the scammer. However. the other party's item will be held at the escrow service and eventually returned.
than it's probably a scam.com or godaddy. grammar problems. Study all licensing information carefully. verify any and all endorsements and credentials on an online escrow site. Many scam sites have ripped off the legitimate license numbers from other companies. Check this information carefully. to find out. You can use a "Whois" tool at any domain name registrar. that's a warning flag." Verify and then trust If using an on-line escrow company. Many scam escrow sites say they've been in business for years but only have been registered for a few days or weeks. When the seller directs you to an escrow site of their choosing. Not being able to get a live person on the phone is a big red flag. You'll also want to check when an escrow site's domain name was registered. Contact any licensing authority listed on the escrow company website and verify that the site is actually registered. inconsistent information or broken links are good indicators that an escrow site is a scam. Steer clear of escrow sites with sloppy content A sloppy Web site is probably a scam. Check that the seals are really of TRUSTe. If you call and get a fax or a generic voice mail that says leave a message. Better Business Bureau and VeriSign Secure on the escrow site. Get on the telephone and converse with folks and verify their credentials. Don't assume that because a company has a website that it is legitimate. Call customer service Call an escrow site's customer service number.Tips for spotting Escrow Fraud Don't be talked into using a particular escrow service Be suspicious of using an escrow service recommended by an online buyer or seller. Be sure to scrutinize the site carefully before using the service. Spelling errors. Don't use any escrow service that doesn't list an address or phone number. such as networksolutions. .com.
Beware of escrow sites that use person-to-person money transfers such as Western Union and MoneyGram.Of course. be wary. avoid doing business with the site. ask your bank to tell you where the wire transfer is being sent. A flashy. If your search turns up consumer complaints about the escrow site." A legitimate escrow service would never try to pass itself off as a non-profit organization. or another search engine. If an escrow site asks you to make a payment to an individual or agent rather than a corporate identity. An escrow company on the up and up will ask you to wire money from your bank to their bank. it's a scam. Be wary of "safe" and "secure" online escrow companies Scammers love to use those words "safe" or "secure" when naming scam sites. Do a search Search for the escrow site on Google. flawless escrow site could still be a fake. No matter how good an escrow site looks. They'll provide you with a routing number and account number. A dash in an escrow company's name. is another red flag. Again. A legitimate escrow service will never ask you to send your money or your product to the other party. If you wire money to an escrow service. The dash seems to show up in many phony company names. You'll also . be sure to verify all claims and content. Yahoo. If your search turns up zero results. just because the site does show up is not guarantee that it is legitimate. How you pay could be a tip off Take a close look at how an escrow site asks you to pay.com. Avoid escrow sites with Web addresses that end in "org. such as secure-escrow. Western Union is not affiliated with any escrow service. a great website is no guarantee an escrow service is legitimate.
info" and ". Don't use an "affiliate. ". These ads promise potential buyers and sellers unbelievably good deals. And if a seller offers to pay shipping and insurance on a really big item. These sites may use a similar name or domain mane to confuse you. "Dear Sir" response. Watch out for companies that claim to be "affiliated" with legitimate company. Looking closely at the email you'll notice it looks rather official looking. Look at the payment information." Use the real company. Call the customer service and verify.biz". If the price on a motorcycle seems to be way under market price there is a good chance it really doesn't exist.want to avoid escrow sites with Web addresses that end in ". The instructions are actually telling you to send the money directly to the scammer. Make sure you are on the correct site. Don't be blinded by a super deal Many phony escrow sites place phony ads on Internet auction and classifieds sites. . In this case knowing that "Square Trade" is not an escrow company is a dead giveaway. Watch out for copycat sites Many scammers copy the content of real Escrow sites. Another tip off is when you send an e-mail to a buyer or seller and you get a scripted. "Square Trade" is not the recipient. but similar e-mails could be sent pretending to be real escrow companies. "Square Trade" is not an escrow service. .US". ". referring you to an escrow site that they've used many times. that's another red flag that the deal may not be on the up and up.cc". It even displays a "Trust-e" seal to make you believe it is secure. Watch out for fake e-mail A scammer tried to pass a fake email as coming from "Square Trade" as an escrow service. Always contact the escrow company directly. The scammer tries to make it look like you are sending your money to safe location.
scripts fail to mimic true human behaviour. In the case of click-through rate based auction models. where members of "Paid to Read" sites are paid small amounts of money (often a fraction of a cent) to visit a website and/or click on keywords and search results. They do this mainly because the charge per click on search results is often the only source of revenue to the site. Organized crime can handle this by having many computers with their own Internet connections in different geographic locations. a practice that is frowned upon in the Get Paid To industry. Often. sometimes hundreds or thousands of times every day. Some owners of PTR sites are members of PPC engines and may send many email ads to users who do search. and authorities to pursue cases against networks of people spread around multiple countries. This involves making numerous searches for a keyword without clicking of the ad. so organized crime networks use Trojan code to turn the average person's machines into zombie computers and use sporadic redirects or DNS cache poisoning to turn the oblivious user's actions into actions generating revenue for the scammer. Impression fraud is when falsely generated ad impressions affect an advertiser's account. advertising networks. enabling a competitor's lower-bid ad for the same keyword to continue.with a legitimate page. while human visitors are presented with a page that commits click fraud. It can be difficult for advertisers. the advertiser may be penalized for having an unacceptably low click-through for a given keyword. . Such ads are disabled automatically. while sending little ads to those who do not. while several high bidders (on the first page of the search results) have been eliminated. This is known as forced searching. The use of 0-size iframes and other techniques involving human visitors may also be combined with the use of incentivized traffic.
if the seller receives a counterfeit Letter of Credit and ships against it. in fact. no goods or inferior goods were shipped. For example. L/C frauds are often attempted against banks by providing false documentation to show that goods were shipped when. If the documents presented conform to the L/C requirements. sellers should require that all L/Cs be either Advised or Confirmed. The seller as the beneficiary of a Letter of Credit is also subject to the risk of fraud. One of the benefits of Advised or Confirmed L/Cs is that the authenticity of the L/C itself is verified before the L/C will be Advised or Confirmed. Other L/C frauds occur when con artists offer a “letter of credit” or “bank guarantee” as an investment wherein the investor is promised huge interest rates on the order of 100 to 300 percent annually. To address this risk. The buyer would be concerned about the beneficiary of a Letter of Credit submitting fraudulent documentation to the issuing bank. Such investment “opportunities” simply do not exist. They are issued by banks to ensure payment for goods shipped in connection with international trade. the issuing bank may honor the presentation and remit payment to the seller under the L/C. . Payment on a L/C generally requires that the paying bank receive documentation certifying that the goods ordered have been shipped and are en route to their intended destination.LETTER OF CREDIT FRAUD There are several types of fraud possible relating to Letters of Credit. Legitimate L/C are never sold or offered as investments. they will not receive payment for the goods shipped from the bank that proportedly issued the L/C.
Be wary of any investment that offers the promise of extremely high yields.Tips for Avoiding L/C Fraud: If an “opportunity” appears too good to be true. including the parties involved and the nature of the investment. Do not invest in anything unless you understand the deal. it probably is. Con artists rely on complex transactions and faulty logic to “explain” fraudulent investment schemes. Do not invest or attempt to “purchase” a “letter of credit.” Such investments simply do not exist. Independently verify the terms of any investment that you intend to make. .
Personal information provided to this site. right down to the real site's security certificate. however. Virus protectors and firewalls do not catch most phishing scams because they do not contain suspect code. and includes an urgent request for personal information usually invoking some critical need to update an account immediately. however. submenu titles and so on. It's virtually impossible for most people to tell they are the target of a phisher by looking at the site alone. that phishers can also appear to be using legitimate links. Other times an IP address — a numerical address — is used to hide the fact that the link is not taking the victim to the real site. Clicking on a link provided in the email leads to an official-looking website. Phishing scams have become so sophisticated. ATM pass codes and social security numbers. Clues in the address can sometimes reveal the deception. often down to the smallest detail including copyright notices. passwords. Similar looking characters might be substituted in the spelling of the link for the real character so that a "1" (numeral one) is used in place of a lower-case "L.com rather than paypal. phishers have used paypa1. Fraud is a growing problem on the Internet as people are tricked into providing personal information including credit card numbers. . Mother's maiden name.PHISHING SCAM A phishing scam is an identity theft scam that arrives via email. The links included in phishing scams take the unsuspecting person to a fraudulent website designed to mimic the real thing. however. bank account numbers. while spam filters let them pass because they appears to come from legitimate sources. The email appears to come from a legitimate source such as a trusted business or financial institution." For example.com. goes directly to the scam artist.
In the US. the Federal Trade Commission (FTC) and others have concentrated on public education to fight phishing scams. Their website keeps an online database of fraudulent emails submitted to them. but many users were caught unaware. In March 2005. The APWG is largely an information hub but they do provide links to consumer resources. Microsoft does not use email notification in this way. Those that clicked on the link in the email were taken to a site that looked like a legitimate Microsoft update site. Microsoft filed 117 phishing lawsuits in the Western District of Washington with unnamed defendants. any phone numbers contained in the email. Fraudulent sites operate for very short periods of time and scams are often run from other countries. or send them phisher email you receive. Instead of updating their software. The FTC also has advice for consumers. one should manually enter the required address in the browser rather than clicking on a link. as a phisher scam could conceivably run concurrent with legitimate business. they were actually downloading a Trojan horse — a remote access program that can steal personal information. The Anti-Phishing Working Group (APWG) is an international organization of volunteers working to track phishing scams. You can check this site for new scams. If the request might be legitimate. as catching phishers is difficult. the company's customer service department should be called to verify the request before providing any information. in early April 2005 a mass emailing that appeared to be from Microsoft Corporation urged recipients to download a much anticipated security update. if any are included. For example. . should not be used. an email address for reporting phishing. however. Even if the request is legitimate. on their website.The best way to someone can protect himself from phishing scams is to avoid supplying personal information to an email request.
A Typical Money Order Scam A typical money order scam involves an inquiry from somebody far away -. They say they’ll buy your item.COUNTERFEIT INTERNATIONAL MONEY ORDER AND CASHIER’S CHECK SCAM A fraud scheme involving counterfeit checks and money orders is speeding across the Internet. Perhaps you’re supposed to send the funds to an expensive shipper who handles overseas transactions. Perhaps the buyer will ask you to refund the excess because he couldn’t get a money order for the correct amount. When you deposit a money order in your account. However. but when the money order arrives it’s for much more than it should be. costing financial institutions and their customers thousands of dollars. The buyer doesn’t ask you to send cash -. expect to hear from your bank. you’ll lose that money for good if you send it. . Sometimes a money order scam is much simpler: you just get a fake money order and send your merchandise away.that’ll take a few days or weeks. The buyer will ask you to send the excess money (above and beyond your sale price) somewhere. the bank has not yet collected the funds from the money order issuer -. Where Things Fall Apart If you send money that you think you got from a money order. In any case.another state or country.they just get the goods for free. your bank will allow you to use some or all of the payment immediately.
Protecting Yourself What can you do to protect yourself from money order scams? The best thing you can do is work with people you know and trust. You may have to expose yourself to the risk of money order scams if you want new customers though. they’ll find out that they’ve got a money order scam on their hands. If your account is empty. A major red flag -. Plus your checks will bounce and your debit/ATM card will become worthless if the money order scam wipes out your account. But when life gets busy it’s easy to miss a detail and forget how these scams work. let’s say). They won’t get any money. You’ll be able to spot most money order scams a mile away if you pay attention. and they’ll deduct the fake money from your account.and something you should never go along with -.When your bank tries to collect the funds (from Western Union. etc It sounds too good to be true . Other red flags: An offer that came from out of the blue (how did this generous trusting person find you?) International money orders Messages with numerous grammar and spelling mistakes Refusal to pay you electronically (they can’t wire money or use an online service) Buyer is not very interested in checking out the merchandise or product details Buyer asks for sensitive information like your bank account number. you’ll go into the negative and you’ll have to pay the bank back.is a request to send or wire money after you’ve been paid with a money order.
You can never be 100% certain.Always verify funds when you’re paid with a money order. but you can improve your chances. but it can take longer. Treat it as suspect -. If you have any doubt. They’ve seen money order scams before and can talk about any suspicious transactions with you. It can take weeks or months for the bank to figure out that you’ve fallen into a money order scam. Call the money order issuer and check to see if you’ve got a legitimate document. don’t spend the money you get from a money order.if you’re lucky you can spend it someday. Feel free to ask your bank for help. Most of the time you’ll find out about a bad money order within a few weeks. . Otherwise be prepared to repay the bank.
Investors are assured that their large profits are being . they have no reluctance or hesitation to promise whatever it takes to persuade you to part with your money. they even go so far as to rent plush offices. Naturally. using the “Reputable Business” approach. however.” promising to handle everything.PROFILE OF COMMON THEMES AND BEHAVIORS OF CON-ARTISTS The primary tool. unrealized promised “opportunities.” and substantial investment into a business structure which either only benefits the con artist personally. or wins trust as a guiding “partner. Being free from this fundamental responsibility. Swindlers. Most importantly. and always seeming to know better. This kind of con artist’s success depends on how long he can keep his victims from knowing they are being cheated. A favourite pitch for new investors or small growing businesses is that small investors can become rich only if they learn and employ the investment strategies used by wealthy persons. plays a role in assisting the con artist with larger fraud operations targeting a larger group of victims.of a reputable investment firm. The usual result is lots of unfulfilled promises. and once there don’t be surprised to be kept waiting (that’s intended to make you all the more eager). have a decided unfair advantage over any honest salesperson or marketing representative . the swindler takes the role of mentor and teacher. hire an interior decorator and professional sounding receptionist and open what has the appearance . You may even have to phone for an appointment. often using the same skills and techniques of any good. skill and resource of con-artists is making promises. successful salesperson. such promises must be convincing. Using profits from previous fraud operations.they don’t have to make good on any of their promises.but not the reality . Most con artists go first class. or if it does not bring direct benefit.
creating a sense of interdependence or putting social pressure not to ask questions. and introductory meetings with lots of people which are only marginally or questionably related to the essential commercial project or investment at hand. swindlers don’t want you to do anything at your leisure. Most con-men deliberately make themselves difficult to investigate. Secondly. contribute to charities. and generally play the role of solid citizen. and business executives are assured that their “partner” is working hard on their commercial project as a first priority. or provide material that. placing more emphasis on how “trustworthy” he is. to obtain as much information as possible. might become evidence in a fraud trial. One difference between a reputable investment firm and a swindler is that reputable firms encourage you to ask questions. involving lots of talk about social circles of “important” people. most often by operating in states or communities where authorities are known to be short staffed or occupied with more pressing criminal activities. This method places heavy emphasis on “friends” with “connections”. They want your money now. using various people who currently believe in or trust the con . The essential strategy in “Friendship Scams” is playing one scam off of another. modus operandi. and by stressing the urgency of the commercial project or investment so you won’t have time to investigate. and especially their fields or industries of business. The only thing a con artist wants is your money. at some point. the con-artists make all efforts at misrepresenting relations.reinvested to earn even larger profits. by changing their names. Most con artists are reluctant to put anything in writing that might cause them to incur any liabilities. and later not to make scandals or voice dissatisfaction. and avoiding discussions of specific step by step progress on the project. or can be properly interpreted only in the context of undocumented verbal discussions. During such meetings. Con artists of the “Reputable Business” profile may join local civic groups. Information you do receive is usually vague and non-committal. Another common approach to fraud operations is “Friendship Scams”.
even if the claims are true . Another common pattern of fraudulent operations. Complicated descriptions or structures also serve to distract or discourage busy people from sorting out the many details to get to the truth. and solid. cooperation and interdependence between organizations. There is a great difference between mere social relations and one or two current shaky business projects together. which is pervasive to many different types and profiles of con artists. is the element of complication. whereas only a successful and legitimate businessman or firm can show a signed official cooperation agreement with that famous person. and maintains his role as being central in the business. and can often appear highly credible.artist to reinforce each other’s trust. in the sense of relations. . the con artist increases reliance on him. investment or transaction. While the “Friendship Scam” approach is very attractive. which survive the ebb and flow of individual interpersonal relations. down to earth working relationships on a professional level. their firm or government agency. Any con artist can show a photograph with some famous person at a glitzy event.the fact is that “close friendships” and “personal relations” with important people differs very strongly from realistic. long-term working relationships which would be professional assets. but rather “institutional” ties. By keeping things complicated. and to strengthen the credibility of the many diverse and highly attractive promises made to each person. the best “connections” are not passing 13 social relations. it is important to remember that . Moreover.
and violates multiple provisions analogous laws of other countries. In most cases. Security professionals frequently comment that executives are often reluctant to believe that fraud is committed by their own employees or independent contractors. the . and often have significant financial resources from their previous con schemes. shows that the most damaging risk comes primarily from corporate insiders and partners. This problem is compounded by the fact that con artists only engage in elegant. and the victims’ lack of their own investigative resources to present a better initial complaint to law enforcement. as key enabling players who assist local outsiders in taking advantage of the economic security weaknesses of the company. ensuring that they quickly get out on bail and set up in another state or region before the prosecutors have made any investigative progress or fully developed evidence. The traditional perceptions of corporate managers have typically blamed outsiders. and because of the clandestine nature of the offenses. Criminal investigative experience. law enforcement agencies seem helpless against con-artists. phone lines or airlines .” organized crime or corrupt government officials. inherently entails risks.criminal statutes apply. Doing business. primarily due to lack of understanding by lawyers and prosecutors. “white collar”. for business failures of their key commercial projects. most perpetrators are not even investigated until significant losses are incurred or critical commercial projects undermined. Indeed. If fraudulent activity involves interstate commerce .PROTECTIVE RECOMMENDATIONS A lack of understanding or reluctance to believe the nature of business fraud fuels the opportunities for this criminal industry. however. in any industry on any territory. making the offense a felony. non-violent crimes. such as “bad partners. however. The fact is that business fraud is against the law in India.including use of the mails. and adds to its damages and costs.
investigate and analyze their current professional and personal circumstances. the most powerful and effective way to protect yourself and your organization against business fraud is simply to carefully analyze and evaluate the individuals with whom you do business. and recent history with other transactions or projects. and similar superficial criteria which con-artists only take advantage of to give false confidence. instead of placing trust in individuals or “friends” with “connections. (3) Before entrusting individuals or employees with new or important projects of high commercial value. Do not be distracted with the quantity. and generally its ability to perform the work promised. and is prepared to back up or follow through on promises made by that individual. to detect warning signs of risk or tendency of business fraud. such as credit reports or business filings. Accordingly. established partnership relations with other capable firms. aided and abetted by internal corruption factors. Concentrate on its capabilities. (4) Investigate the person and firm you would be dealing with. This approach consists of the following 8 elements: (1) Give priority to firms and organizations for professional services and representation of your commercial interests. (5) Do not rely only upon “open source” or standard “due diligence” information. Verify that the company does what the representative says. Talk to experienced investigators or law enforcement veterans who can identify which seemingly innocent pieces of information may indicate a “red flag” for a risk or . call the company to make sure that person really works there or has contractual relations. type or prestige of its office locations.majority of outside fraud and corruption is actually initiated.” (2) If you are dealing with a representative. Such raw data is often superficial or even misleading when taken at face value or out of context. to investigate a person or firm who you plan to entrust with an important project.
or do not conduct the majority of business under any one name or trademark. preferably with professional legal or financial advisors. (8) Continue to monitor the performance of the project. (7) Closely examine the basis and merits of any proposed business or investment offer. prior to signing a contract or making payment. (6) The most accurate indicator of reliability is that the firm or company relies upon its corporate name. frequently change them. or proposed modifications or extensions of an existing business or investment.pattern of fraud. . image and reputation. A key indicator is the transparency and disclosure of detailed mechanisms of the proposed transaction or methods of work to be performed. instead of relying upon assurances of individual representatives or referral agents. directly from those actually performing the work. where and how to look further for other relevant information to get a clear and accurate representation of the whole truth. present a risk factor. Legitimate and successful companies actively build their brand. you are likely to get equally “secret” results. and work to uphold its image. Individuals or businesses that maintain multiple corporate registrations under unrelated names. If you hire “secret” services. use it. and conducts business under that one trademark identity. business or investment. and who know when. giving priority to first-hand professional information. do not use most of them.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.