01Fake buyers and advance-fee frauds
A ‘buyer’ sends a large order and then asks you to pay for registration, an import permit, lab testing by a named lab, or a visit. After you pay, they vanish. A genuine buyer does not charge the seller to place an order.
02Fake or unworkable letters of credit
Fraudsters send LCs by email or from banks that do not exist, or real LCs with clauses you can never meet (for example a certificate only the buyer can issue). Receive LCs only through your own bank, and have it check authenticity and every clause.
03Changed bank details (email compromise)
Criminals hack or copy an email account and tell the buyer that your bank account has changed. Tell buyers at the start that your account will never change by email, and confirm any change by phone on a known number.
04Fake government websites
DGFT has warned about look-alike websites and emails that collect money for IEC and other DGFT services. Use only dgft.gov.in, and keep your digital signature certificate secure — DGFT has also cautioned exporters about misuse of compromised DSCs.
05Protect yourself
Use safe payment terms with new buyers, check the buyer through ECGC (and its Specific Approval List), and keep your RBI realisation deadline in mind. If a dispute arises with an overseas buyer, DGFT's Committee on Quality Complaints and Trade Disputes (FTP 2023, Chapter 8) can help, with your council.
- No advance, no LC from a sound bank, no ECGC cover → do not ship on credit to a new buyer.
- Never release an original BL or agree to telex release before payment.
Sources (6)
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