Freshdi Warning: Beware of Import-Export Scams

At Freshdi.com, we prioritize the safety and security of our users. Unfortunately, the import-export industry is not immune to fraudulent activities. To help you stay vigilant, we have compiled a list of common scam indicators and steps you can take to protect yourself.

Common Signs of Fraudulent Activities

1. Unverified Accounts: Be cautious of accounts that lack verification or have incomplete profiles. Always check for verified badges and complete contact information.
2. Suspicious Payment Requests: Scammers often request payments through unconventional methods such as Western Union or cryptocurrency. Always use secure and traceable payment methods.
3. Too-Good-To-Be-True Offers: If an offer seems too good to be true, it probably is. Be wary of extremely low prices or unrealistic promises.
4. Lack of Documentation: Legitimate transactions should always be accompanied by proper documentation, including invoices, shipping details, and contracts. Avoid deals that lack these essentials.
5. Pressure Tactics: Scammers may use high-pressure tactics to rush you into making a decision. Take your time to verify all details before proceeding.

Major Foreign Trade Frauds to Watch Out For

1. Advance Payment Scam: The buyer requests to take goods with a 30% advance payment and promises to pay the remaining 70% later. After you send all the goods with proper paperwork, the buyer does not pay the remaining amount. This scenario often happens due to negligence in maintaining a proper system. Both advance and after-payment transactions occur in the export-import business. To avoid this, follow a proper system and ensure trust in the other party.
2. LOI (Letter of Intent) Scam: Fraudsters may place large orders and ask you to fill out a vendor registration form, requiring a payment (e.g., Rs. 70,000) to confirm the order. Once you pay, the amount is gone forever. Always verify the legitimacy of such requests.
3. Email Scams: Fraudsters may approach you through professional-looking emails, asking for an upfront payment to start a deal. Always cross-check and verify before making any payments.
4. Letter of Credit Scam: The buyer might propose a payment structure of 30% advance, 60% LC (Letter of Credit), and 10% after receiving the goods. This can lead to the final 10% remaining unpaid. Insist on 30% advance payment with 70% LC to avoid such issues.
5. Online World Scam: Be cautious of fake websites, posts, and social media ads offering well-known products at unusually low prices. Always verify the authenticity of online sources.

Additional Tips to Avoid Scams

1. Research Thoroughly: Before engaging in any international trade transaction, thoroughly research the companies or individuals you are dealing with. Check their reputation, read reviews, and verify their information.
2. Verify Product Legality: Ensure the legality of the products you are interested in importing/exporting. Check for patents, trademarks, and copyrights, and ensure the products are not counterfeit.
3. Be Wary of Unusual Payment Requests: Be cautious of any unusual payment requests, such as requests for cash payments or through third-party intermediaries. Use secure payment methods and avoid making payments before verifying the legitimacy of the transaction.
4. Question Too-Good-To-Be-True Offers: Be skeptical of offers that seem too good to be true, such as unusually low prices or high profits. Such offers may be signs of a scam.
5. Check Product Quality: Ensure that the products you import/export meet the necessary quality standards and that the supplier can provide high-quality goods.
6. Read Contracts Carefully: Thoroughly review any contracts or agreements before signing and ensure you fully understand the terms and conditions.
7. Protect Sensitive Information: Avoid sharing sensitive information, such as bank account details or trade secrets, with anyone you do not fully trust.
8. Work with Reputable Companies: Collaborate with reputable companies and avoid dealing with unclear or unverified businesses.
9. Stay Informed: Keep up-to-date with the latest news and trends in international trade, and learn about common scams and frauds in the import-export industry.
10. Trust Your Instincts: If something feels off or suspicious, trust your instincts and proceed with caution. If you are unsure about a transaction or agreement, seek advice from experts.

Overcoming Foreign Trade Frauds

1. Payment: Avoid advance payments without proper verification. Use secure payment methods like letters of credit and ensure all paperwork is in order.
2. Sample Orders: Request samples before placing full orders to verify product quality.
3. Country Visit: If feasible, visit the partner’s location or use third-party verification services.
4. Price Caution: Be wary of offers with unusually low prices. Verify the legitimacy of such deals.
5. Internet Research: Conduct thorough research on the internet to verify all details before proceeding with any transaction.

How to Report Suspicious Activities

If you encounter any suspicious activities or accounts, please report them immediately. Your vigilance helps us maintain a safe and trustworthy platform for everyone.

Report a Scam: To report a scam on Freshdi.com, please visit the product/RFQ post or the business page of the buyer or supplier. Click the report icon and fill in the required information and evidence for us to review.

Final Reminder

Remember to use your best judgment before engaging in any business transaction. Freshdi.com advises you to stay alert and conduct all transactions carefully. Freshdi.com will not be responsible for any losses incurred due to fraudulent activities or misrepresentation by users. Stay vigilant and trade safely!