Safe Trading Tips is a document designed to help you in identifying trustworthy trading partners. Our priority No 1 is to create a safe and well lit business to business marketplace. While the vast majority of commerce online is completed without complications, fraud and dishonest buyers and sellers are a fact of Internet life. Dragonicum takes fraud seriously and provides guidelines to help you decrease the risk of becoming a victim of fraud.
Make sure you are purchasing merchandise from a reputable source, and directly from the company that holds the trademark or patent.
All online businesses may sooner or later run into a visitor trying to make fraudulent purchases on their website at some point. Hopefully the transaction or situation can be identified and corrected before it ever becomes a real problem.
It is very important for a business to be on the alert and able to identify fraudulent situations and orders. Some danger signs of fraudulent orders are:
Especially around holidays, high-demands items are associated with higher purchasing risks. Do additional checking, especially with computers, jewelry, electronics and items that are sold out in stores. If a seller claims to have a large quantity of an item that is difficult to find, do your research to verify the legitimacy of his company.
The costs of fraud can cause a great loss to your business, and it is definitely worth the time you use to take some extra steps for preventing it. If you receive a suspicious order - no matter small or large - we recommend you to do the following:
Before you enter any contract with the Seller, make sure you have understood the sellers refund and return policies. Get everything in writing. The contract should include all terms of the deal and the promises that are made. Consider not purchasing any merchandise from Sellers whom do not provide you with all necessary information.
Use a credit agency to check your potential partner's credit history, and contact the company registry in your partner's country to ensure that the company exists with a valid registration.
If you are doing business with a supplier for the first time, you will usually be asked to deposit 30% in advance. In this case - make sure you have done your research to ensure the legitimacy of the company before you agree to deposit, or you could ask him for a more secure way of payment, such as a letter of credit. And be extra cautious if the seller urges you to pay for the merchandise immediately or by wiring services. Real danger sings of frauds is when the seller demands you to act immediately. So do not let yourself be pressured, because it indicates clearly that the seller is more focused on payment rather than any other issues. Consider not purchasing from sellers who will not meet your requirements of safe money transactions.
When you are the Buyer; ensure that the products will meet your requirements by ordering samples of the products before committing to a purchase order.
When you are the buyer; be careful when you provide samples of resale value - because you really do not know the potential buyer's intentions - he might sell them. We will strongly recommend you to request the potential buyer for payment and shipping costs, when you are asked to provide samples of resale value.
Merchandise products are best inspected before delivery, before shipment and before payment. The best way to check on your suppliers is at the source of manufacture or at the point of consolidation, before the goods are packed into a container. You can demand such an inspection as a condition to payment.
Is the buyer unknown to you, or maybe you have not been doing business with the buyer for very long, do not extend credit to the buyer. Avoid payment risks, and ask your buyer to open L/C, a letter of credit (a document, issued by a bank per instructions by a buyer of goods, authorizing the seller to draw a specified sum of money under specified terms, usually the receipt by the bank of certain documents within a given time)..
Keep in mind - there are some regions in the world with high reported incidences of fraud; Central America, Eastern Europe and West Africa. Check also the shipping address - does it match the contact address? If not - this can be a fraudulent indicator! Therefore, watch out for address inconsistencies.
Do your homework and your research to ensure the legitimacy of the company.
And consider not purchasing anything from Sellers who will not provide you with the information you require.
Buy postal insurance for your items. It will protect you should your shipment get lost or if the buyer claims that the package was never delivered. Promptly send the tracking number to your buyer so they feel satisfied as they monitor its delivery progress. Use delivery confirmation as an added precaution.
Do you homework and check the legitimacy of the company thoroughly. Beware of fake email addresses and fake websites! With some technical knowledge, it is possible for fraudsters to send fake emails and establish fake website, or even copy email address and websites of legitimate companies.
Protect yourself from online fraud by following our tips for Safe Trade Online. Keep yourself updated on reported fraud attempts on Internet which will learn you more about the signs of fraud.
In case you suspect fraud, contact your potential partner and arrange a telephone-meeting or a face-to-face meeting with him. Most buyers and sellers are honest, and the problems which may have occurred between you are often a matter of misunderstanding.
You can also report to US Cert or IC3, which may announce the matter on their websites in order to inform and warn other Internet users.