Before paying a deposit, check the supplier is genuine. Government guidance suggests asking overseas companies for original incorporation documents or trade references, and checking their IBAN with an IBAN checker. Reluctance to share company details is a warning sign.
Rogue emails asking for bank details are a common route to fraud. Do not act on new payment instructions received by email alone, and verify any change independently with a contact you already know.
The main payment methods are open account, documentary collection, documentary credit (a letter of credit arranged through your bank) and electronic transfer. Letters of credit follow the ICC's UCP 600 rules and depend on accurate shipping documents. If you are defrauded, contact the police, report it through Report Fraud and tell your insurer promptly.
Sources
- GOV.UK: Crime and fraud prevention for businesses in international trade (opens in a new tab)
- GOV.UK: Freight forwarding: managing risk (opens in a new tab)
A summary of the public sources above, checked when it was published. General information, not legal, tax or financial advice.