December 22, 2006: Though International trade has fast picked up especially in last five years, dishonesty, crime, product counterfeiting are plaguing it. Such is the magnitude of the crime that many countries including US, China have set up special cells to deal with such complaints. Unlike in the old days when a scamster used to meet face-to-face with people it wanted to cheat. Now, with modern technology he has become more sophisticated using e-mail, message boards and chat rooms to effectively con individuals and businesses. Such scamster can be anywhere at any time and just a click away from his target. Anonymity, ease, and reach on global scale that technology offers are contributing to the rapid expansion of fraud. While you may have legal resources to sue such conmen, following legal procedures outside your home country to catch and punish these fraudsters are almost non-existent.

Imports from Nigeria are particularly Vulnerable: Experience of various importers from across the globe shows that Nigeria is a dangerous country to operate in. Movement of cargo is always at risk and IT networks are vulnerable to cyber attack.  One of the most common scam from this place is Escrow Fraud. This involves a third-party escrow service company to help facilitate the exchange of money and goods. The scammer advises the victim to use an escrow service website that the scammer created. The website resembles a legitimate escrow service company website. The victim sends the payment through the bogus website or the victim sends goods and waits for payment.

Another major fraud from here is Letter of Credit Fraud. Letters of credit issued by the buyer's bank is forwarded to the bank located in the seller's country to notify the seller. Scammers then proceed to produce identical documents that a bank produces which are then sent directly to the seller. The seller ships the contracted goods and waits for payment in his bank which never happens.

Practices and Control in US: This year, during July, Pottengal Mukundan, a director in CCS, a department set up in US to deal with such crimes, shared his experience of helping companies avoid such frauds and shared his vision of developing resources to track down such crooks. Based outside London, CCS helps companies by maintaining databases on criminal methods and activities, carrying out investigations and working with law enforcement agencies.

As per its reports, though such crimes are a global phenomenon, but is far more rampant in China. It also, in its report appreciates positive actions taken by India, Malaysia and the Philippines that have resulted in decreased incidents in these countries. Imports/exports from Indonesia, Nigeria, Bangladesh and the Malacca Straits area continues to suffer in the hands of crooks. Another department in US, U.S. Immigration and Customs Enforcement (ICE) Mission is made responsible for investigating a wide range of domestic and international activities as financial and smuggling violations (including illegal arms exports), financial crimes, commercial fraud, child pornography/exploitation and monitors through more that 50 international offices around the world. Its is also the overseas points of contact for the importers and exporters and responds to questions about importing regulations, and information on various programs. It can be contacted at United States Embassy, Office of the DHS/ICE Attaché , SES Quadra 801, Lote 3, 70403-900 Brasilia, DF, Tel: 5561-3312-7398, Fax: 5561-3312-7338

Take following steps to avoid these scams: Do your own investigation rather than depending upon message board answers as the conman himself might respond to your message with positive comments. Beware of complex transactions and letters or messages that are not professionally written. Ask for references and check with trade agencies or chamber of commerce of the seller or buyer country