IS IT POSSIBLE TO GET SCAMED BY L/C?
Post 1 of 10
Hey guys, is it possible to get scamed by L/C? I got somebody offering L/C for order over $5000. I don't have a problem with $5000 just don't want to loose it. I just lost $1700 to T/T
20 Apr 2006 20:08
Post 2 of 10
Replying to [exit]:
are you a buyer?
you ca't get scammed. it's 100% freerisk. what can go wrong is that you might get some low quality products than you have ordered.
are you a buyer?
you ca't get scammed. it's 100% freerisk. what can go wrong is that you might get some low quality products than you have ordered.
20 Apr 2006 22:44
Post 3 of 10
Replying to [exit]:
The answer is definitely YES !
You lost USD 1700 via T/T like you said, and lemme tell you you can lose much more than that via L/C at sight if you do not equip it with SGS pre-shipment inspection.
Try to imagine, let's say you want to buy 100 pieces of mobile phones and payment is using L/C at sight.
Let's assume you do not put any inspection survey (pre-shipment) of any kind as one of L/C requirement.
What this fraudster will do ?
They will fill a brick inside every mobile phone box instead.
They submit all the docs as if everything is OK, your bank receive the docs and release the payment before you can even see the container for yourself.
your lost will be horendous
The answer is definitely YES !
You lost USD 1700 via T/T like you said, and lemme tell you you can lose much more than that via L/C at sight if you do not equip it with SGS pre-shipment inspection.
Try to imagine, let's say you want to buy 100 pieces of mobile phones and payment is using L/C at sight.
Let's assume you do not put any inspection survey (pre-shipment) of any kind as one of L/C requirement.
What this fraudster will do ?
They will fill a brick inside every mobile phone box instead.
They submit all the docs as if everything is OK, your bank receive the docs and release the payment before you can even see the container for yourself.
your lost will be horendous
21 Apr 2006 02:14
Post 4 of 10
Replying to [trado]:Yes, trado is absolutely right! It has happened a lot of times this way.....Infact there have been instances in which full containers have been shipped with bricks, etc. So, be careful & do not proceed unless completely sure about the profile of the company![[em1]](http://img.alibaba.com/images/eng/style/icon/emoticons_smile.gif)
21 Apr 2006 02:51
Post 5 of 10
Dear Exit,
As Trado Explained well, there are many ways in L/C also which don't let it qualify as totally riskfree instrument which could include:
a. Incorrectness of Merchandise (as the bank deals in documents and not goods)
b. Disparities in the documents themselves (as there is bound to be some error or the other in the 100 odd places in the LC documents set)
c. Set up of many kinds in the banking channel itself.
d. Clauses not covered by L/C etc in the contract.
e. National/Political & non-Commercial Risks
f. etc etc...
Broadly generalising, it is your relationship with the Buyer and your control over the Deal which will ensure that the transaction is totally safe and part of the long term business with your Customers.
Rgds,
To prevent spam, do not enter your contact information - Moderator
As Trado Explained well, there are many ways in L/C also which don't let it qualify as totally riskfree instrument which could include:
a. Incorrectness of Merchandise (as the bank deals in documents and not goods)
b. Disparities in the documents themselves (as there is bound to be some error or the other in the 100 odd places in the LC documents set)
c. Set up of many kinds in the banking channel itself.
d. Clauses not covered by L/C etc in the contract.
e. National/Political & non-Commercial Risks
f. etc etc...
Broadly generalising, it is your relationship with the Buyer and your control over the Deal which will ensure that the transaction is totally safe and part of the long term business with your Customers.
Rgds,
To prevent spam, do not enter your contact information - Moderator
21 Apr 2006 03:13
Post 6 of 10
Replying to [trado]:I am a buyer and I guess Trado got it right. That's what I was worried about too. So I guess without inspection L/C is as useless as T/T
or WU. And who will inspect it for me? If I don't trust the seller why should I trust the inspector?! He can be sellers brother for all I know. It's the same country I got scamed from 3 out 3 times.( No offence, Trado but your country got itself quite a nasty reputation).
or WU. And who will inspect it for me? If I don't trust the seller why should I trust the inspector?! He can be sellers brother for all I know. It's the same country I got scamed from 3 out 3 times.( No offence, Trado but your country got itself quite a nasty reputation).
21 Apr 2006 07:04
Post 7 of 10
Replying to [exit]:The SGS inspection is a very good option when you are not able to check the goods your self and even that I am base in Hong Kong and can reach most places in China by my self in one day, I have stop most of my own production check, SGS do a much better and reliable job than I often can do by my self and it is worth the 250-300USD, sins I some time have to fly to get where I need to go, I trust SGS rather more than waste 1-3 days and fly, so I think you can trust them, I do and have use them many time,
Just back up your L/C whit an additional condition that SGS or similar inspection company is required,
But please know that your deal have to give you income to cover the expenses to the L/C, SGS report and your profit, to make it work,
Trado has been her sins 04 and he has given many good advice regarding trading with Indonesia and never ask for any thing him self, he know what he is talking about and admit there is a problem in Indonesia and it is mostly regarding electronics, so I dont think that you offence him Exit,
Just back up your L/C whit an additional condition that SGS or similar inspection company is required,
But please know that your deal have to give you income to cover the expenses to the L/C, SGS report and your profit, to make it work,
Trado has been her sins 04 and he has given many good advice regarding trading with Indonesia and never ask for any thing him self, he know what he is talking about and admit there is a problem in Indonesia and it is mostly regarding electronics, so I dont think that you offence him Exit,
21 Apr 2006 08:27
Post 9 of 10
Replying to [exit]:
No problem dude. And thanks to mbmHK.
You got it right,I don't think it's an offense to me at all.
I only side with the truth and never side with my country or fellow countrymen if they are on the other side.
They can talk bad about Indonesia for all I care so long that I personally do not do anything wrong in the business.I do not see any needs to defend my country especially cheaters/fraudsters inside it.
No problem dude. And thanks to mbmHK.
You got it right,I don't think it's an offense to me at all.
I only side with the truth and never side with my country or fellow countrymen if they are on the other side.
They can talk bad about Indonesia for all I care so long that I personally do not do anything wrong in the business.I do not see any needs to defend my country especially cheaters/fraudsters inside it.
23 Apr 2006 20:33
Post 10 of 10
Replying to [exit]:
Yes, it is quite possible. Reasons:
(1) An LC is only as good as the bank that issues it. If the bank is shady, has possiblity of collapsing at any stage, or is of dubious integrity, scamis possible.
(2) LC operates ONLY on the basis of documents. So if you order steel, and get bricks, it shows that you have not asked for the documents to ensure that only steel is shipped, and NOT bricks.
The trick lies in making sure that an LC works *for you*.
Hope I have answerd your question?
Yes, it is quite possible. Reasons:
(1) An LC is only as good as the bank that issues it. If the bank is shady, has possiblity of collapsing at any stage, or is of dubious integrity, scamis possible.
(2) LC operates ONLY on the basis of documents. So if you order steel, and get bricks, it shows that you have not asked for the documents to ensure that only steel is shipped, and NOT bricks.
The trick lies in making sure that an LC works *for you*.
Hope I have answerd your question?
27 Aug 2007 22:19
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