Alarm bell ringing: in-depth analysis of agricultural products trade fraud prevention and response strategies
In recent years, with the deepening of bilateral economic and trade relations between China and Argentina, especially in the field of agricultural trade, Argentina has become one of the main suppliers of beef, aquatic products and other important agricultural products to China. However, behind the rising trade volume, the shadow of trade fraud also quietly hangs over. Recently, Chinese beef and aquatic products importing enterprises have encountered frequent cases of fraud by lawbreakers in Argentina, which not only brought huge economic losses to relevant enterprises, but also seriously damaged the normal order and commercial reputation of Sino-Arab trade. Therefore, it has become a compulsory course for every China import enterprise involved in the South American market to deeply analyze the fraud means and construct a strict prevention system.
I. Disclosure of fraud means: disguise and trap
According to the analysis of recent cases, the fraud methods of lawbreakers are characterized by specialization, concealment and technicalization. Their core routines usually include the following key links:
First, identity disguise. Fraudsters often set up fake websites highly similar to formal enterprises by falsely using the names of well-known and regular meat processing plants or aquatic products export enterprises in Argentina. These phishing websites are extremely similar to the real website in domain name, page design, company logo and even product display, which is very confusing. At the same time, they will register high-copy mailboxes with suffixes that are extremely similar to the official mailboxes of formal enterprises (for example, replacing the letter “l” with the number “1” or adding or subtracting a certain letter) as a communication tool to make Chinese enterprises distinguish between authenticity and authenticity.
The second is bait throwing and psychological game. After getting in touch, fraudsters usually quote attractive prices or claim to have tight supplies, taking advantage of Chinese companies ‘eagerness to purchase. In communication, they often behave extremely “professional”, able to provide seemingly complete product specifications, samples of health certificates, etc., and even gain trust through forged past trade records.
Again, forged documents and defrauded payment. This is the heart of the fraud. After signing the contract, the fraudster forges the Bill of Lading. As a document of title, bill of lading is the most important document in ocean trade. Illegal elements use graphics processing technology to forge scanned copies of bills of lading and send them to Chinese enterprises by mail, claiming that the goods have been shipped. Driven by a sense of urgency that the goods have been shipped, they demand that Chinese companies pay full or a large proportion of the purchase price. Once the money arrives, they quickly move the money, cut ties and disappear.
Finally, the truth came out when the goods were picked up. When the Chinese enterprise takes the forged bill of lading to the port of destination to pick up the goods, it is informed by the shipping company or customs that there is no such goods at all, or the bill of lading is forged. At this time, fraudsters have long disappeared, because transnational legal prosecution is difficult and costly, enterprises often face the dilemma of “money and goods empty”.
II. Analysis of risk causes: information asymmetry and process loopholes
The main reasons for this kind of fraud are the asymmetry of information in international trade and the lack of internal risk control process of some enterprises.
On the one hand, geographical distance and language barriers make it difficult for Chinese enterprises to conduct on-site visits to Argentine exporters and rely too much on online information, which gives lawbreakers an opportunity to take advantage of them. On the other hand, some small and medium-sized enterprises have fluke mentality in the procurement process, ignoring the necessary background investigation in order to seize business opportunities. In particular, early payment of the full amount or arranging payment without receiving the original bill of lading to verify authenticity are important reasons for increasing risk exposure. In addition, unfamiliarity with Argentine exporter qualification inquiry channels is also one of the factors that make fraud successful.
III. Prevention strategy: building a full-process risk control system
In the face of the complex international trade environment, Chinese import enterprises must be vigilant, build an all-round prevention mechanism from the source to the terminal, and effectively protect their own rights and interests.
1. Multidimensional verification, verify authenticity.
At the beginning of establishing contact with Argentine enterprises, it is important to verify the identity of the other party through formal channels. Do not rely solely on the website or mailbox provided by the other party to trust their identity.
Verification through official channels: The registration information and business qualification of the enterprise can be inquired through official or semi-official institutions such as Argentine Embassy and Consulate in China, China Commercial Office in Argentina, local well-known industry associations (such as Argentine Beef Promotion Association IPCVA), etc.
Cross-verification: verify whether the contact information provided by the other party is consistent with the registration information through the official website of the shipping company and the third-party commercial credit reporting agency (such as Deng Bai, etc.). If you find a slight difference in email domain name, you should immediately confirm it with the other party by telephone, video conference and other means, or even ask the other party to verify their identity through official social media accounts.
2. Standardize contracts and strictly control clauses.
When signing trade contracts, international standard contract models should be used, and liability for breach of contract and dispute resolution mechanisms should be clarified. For customers who cooperate for the first time, T/T (wire transfer) full prepayment or payment before delivery is not recommended in principle. L/C (letter of credit) settlement should be preferred, and the risk should be avoided by using the bank’s document review mechanism; if T/T must be used, the mode of “deposit + balance payment” should be adhered to, and the balance payment should be based on the receipt of the original bill of lading and verified by the shipping company.
3. Document review, with the help of professional strength.
Don’t rush to pay after receiving documents such as bill of lading. The status of the cargo should be checked by entering the container number or bill of lading number through the official website of the shipping company to verify whether the ship really exists, whether it is loaded with relevant cargo and whether the voyage is normal. If necessary, professional third-party logistics companies or freight forwarders can be entrusted to verify. For large amounts of trade, it is recommended to hire professional lawyers to review contracts and documents.
4. Field trip, seeing is believing.
For long-term and large-scale agricultural trade, enterprises should arrange professionals to go to Argentina for on-the-spot investigation as much as possible. Seeing the production line and inventory of the factory with one’s own eyes and signing the contract face-to-face is the most direct and effective way to verify the strength and reputation of the other party.
International trade opportunities and risks coexist. The frequent occurrence of fraud cases in Argentine agricultural products trade has sounded the alarm bell for all China enterprises. While actively exploring overseas markets, enterprises must always tighten the string of risk prevention, abandon the mentality of “cheap, easy to save”, verify information through formal channels, standardize operation procedures, and carefully pay for goods. Only by establishing a scientific and rigorous risk prevention and control system can we achieve stability in the complex international business sea and avoid falling into the trap carefully woven by lawbreakers. Please remember that a rigorous verification may save the company’s annual profits.