The Ultimate Guide to Avoiding International Business Scams (2025)
You just landed the deal of a lifetime. A foreign buyer with an impressive website and a well-connected team is ready to place a massive order. The terms are favorable, and the payment is promised to be quick. Your leadership team is celebrating the new global partnership, dreaming of expansion.
But before the deal can be finalized, the buyer insists you cover a few “minor” upfront costs — registration fees, government approvals, or event expenses. The wiring instructions look official enough, and the pressure to move fast is intense.
What you don’t know is that this “partner” is a phantom, their website is a lie, and the account you’re about to wire to will be emptied within hours.
Instead of expanding your business, you’re about to join the thousands of companies that lose billions of dollars annually to international scams, according to the FBI’s Internet Crime Complaint Center (IC3). And those are just the reported cases.
Quick Takeaways for Busy Executives
Verify everything independently. Use official registries and third-party services.
Have counsel review all contracts. Never sign a counterparty’s draft without legal review.
Confirm banking details securely. Always verify wire instructions by phone with a known contact.
Train your team on red flags. Make fraud awareness part of standard training.
Act within 72 hours. Fraud recovery is most effective in the first three days.
Engage experts early. Prevention is always cheaper than recovery.
Why This Guide Matters
Most fraud resources are written for consumers. This one is different. It’s built from t’s built from real cases our international litigation team across multiple continents, industries, and scam types.
These aren’t hypotheticals. They’re the patterns we see every week, distilled into checklists, case files, and response plans you can use today to protect your company.
Why Businesses Are Prime Targets
Fraudsters don’t waste time on random victims — they study their marks. Unlike consumers, companies manage large transactions, operate in fast-moving environments, and face constant pressure to deliver growth. That urgency creates blind spots.
Scammers also exploit complexity. Different languages, cultures, and legal systems create confusion that makes it harder to spot red flags or pursue recourse. And nearly all scams prey on psychology:
Foot-in-the-door: Small requests escalate into bigger ones.
Scarcity and urgency: Deadlines trigger fear of business out (FOMO).
Halo effect: A prestigious London or Singapore address makes an entire enterprise look credible, but it may be nothing more than a virtual office.
From Our Case Files: Real-World Scams We’ve Seen
The Phantom Subsidiary: A company claimed to have a subsidiary in the Marshall Islands — every document spelled it “Marshal Island.” No such entity existed.
The Impossible Cargo: A U.S. buyer paid over $10 million for fish to be delivered to China on a Cambodian vessel. The ship wasn’t even large enough to hold one-fifth of the promised cargo. It never arrived.
The Fake Bank: Another company boasted of millions held at an “Australian Bank” named after the Atlantic Ocean. It didn’t exist.
The Blimpy Investment Bank: A client nearly wired a $250,000 loan fee to a “prestigious” London bank. The supposed headquarters was actually Blimpy Burger unit.
The Counterfeit FDA Certificate: During COVID, a “certificate” with a cartoon eagle and a Hotmail email address exposed a rogue employee’s mask scam.
The Fake Court Rulings: We’ve seen “Supreme Court decisions” and “federal judgments” fabricated out of thin air. Local checks quickly proved them fake.
Each of these examples could have been avoided with basic due diligence.
The Scams You Need to Know About
The Fake Foreign Buyer Scam
Overseas buyers place large orders, then demand “fees” for registration, taxes, or ceremonies. Invitations to sign contracts in-country are common traps.
Lesson: Verify all registrations, insist on bilingual contracts, and be wary of elaborate signing ceremonies.
Fraudulent Distributors and Partners
Scammers pose as distributors or JV partners to steal IP or tie you up in nonsense negotiations.
Lesson: Verify licenses, conduct bilingual due diligence, and have local counsel review all agreements.
Trade Finance and Shipping Document Fraud
Fraudsters forge letters of credit or bills of lading to trigger payment for non-existent goods.
Lesson: Use reputable inspection companies, confirm with issuing banks, and rely on escrow.
“Sha Zhu Pan” (Pig-Butchering) Scams
Fraudsters groom executives for months before pitching fake crypto or forex investments. Profits appear on manipulated dashboards to lure larger commitments.
Lesson: Prohibit speculative investments with company funds and train leaders to recognize grooming tactics.
Relationship-Driven Investment Scams
Personal trust is exploited — sometimes even romantic relationships — to pitch corporate “opportunities.”
Lesson: Enforce dual sign-offs for major transfers. Trust can never replace due diligence.
Bank-Switch and Invoice Fraud Scams
Hackers alter legitimate payment instructions in hacked emails. Accounting wires funds to the wrong account, which is emptied within hours.
Lesson: Confirm banking changes independently, require multi-level approvals, and train staff to spot red flags. For more on how to protect against bank switch scams, check out The Bank Account Switch Scam: What to Do Before and After It Happens to You.
The Risk of Fake or Compromised International Lawyers
Fraud doesn’t just come from counterparties. It can also come from those you hire to protect yourself.
Non-lawyers masquerading as counsel: Bargain “legal services” often produce unenforceable contracts or fake IP filings.
Captured counsel: In countries like China and Russia, local lawyers may be legally compelled to share your information.
Protect yourself:
Anchor your strategy with trusted counsel.
Verify foreign lawyer credentials.
Never outsource IP registration to counterparties.
The Crucial Role of Cybersecurity
Most scams today start with compromised email accounts. Protect against:
Defense requires multi-factor authentication, phishing training, and email authentication protocols (DMARC, DKIM, SPF).
Why Recovering Lost Funds Is So Difficult
Cross-border recovery is slow, costly, and often exceeds the amount lost. For losses under $500,000, international fraud litigation often costs more than recovery. Speed is everything; after 72 hours, the money is usually gone
The 5-Part Due Diligence Checklist for International Deals
Corporate Verification
Check official registries.
Confirm names in English and local language.
Verify business licenses and scope of operations.
Financial Verification
Request audited financials.
Confirm bank details directly with the bank.
Use escrow or letters of credit.
Operational Verification
Confirm addresses with inspections.
Use independent inspectors.
Investigate ownership structures.
Legal Safeguards
Reputation & Background
Request and verify client references.
Review litigation and regulatory filings.
Check sanctions and compliance databases.
A 72-Hour Response Plan After Suspected Fraud
Hour 1–12: Immediate Containment
Stop communication, preserve evidence, alert legal and finance teams.
Hour 12–24: Escalation
Contact your bank for a SWIFT recall, request a receiving bank freeze, file with FBI IC3, notify regulators.
Hour 24–48: Investigation
Engage international counsel, retain forensic specialists, compile evidence.
Hour 48–72: Response Strategy
Evaluate recovery options, notify insurers, update stakeholders, tighten controls.
Prevention Is Your Best Defense
International scams exploit ambition, trust, and speed. Recovery is rare and expensive. Prevention is the only reliable strategy.
Before wiring funds or signing overseas contracts, take one step that can save millions: have experienced counsel vet the deal.
Frequently Asked Questions: International Business Scams
What is an international business scam?
A fraudulent scheme that exploits cross-border complexity — distance, culture, and fragmented legal systems — to steal money, IP, or data.
Why are businesses more vulnerable than individuals?
Because they manage large transactions under growth pressure, with decision-making spread across teams.
What are the most common scams?
Fake foreign buyers, fraudulent distributors, invoice fraud, trade finance fraud, pig-butchering, and corporate impersonation.
How quickly should we act if we suspect fraud?
Immediately. Contact your bank, initiate a SWIFT recall, and preserve evidence. After 72 hours, recovery is nearly impossible.
What are the key red flags?
Unrealistic deals, high-pressure deadlines, requests for cryptocurrency, contracts only in English, inconsistent details, or evasive communication.
How can I verify an overseas partner?
Check government registries, retain local counsel, verify addresses, and request audited financials. Never rely solely on counterparty documents.
What is invoice fraud?
Hackers alter legitimate banking details. Prevent this with independent confirmation and multi-person approvals.
Are cryptocurrency requests legitimate?
Almost never. Legitimate firms use traceable, regulated banks.
Does business insurance cover fraud?
Most standard policies exclude fraud. Some cyber or crime policies may cover limited losses. Review your policy carefully.
What should we do if we’ve already been scammed?
Stop payments, preserve evidence, notify your bank, file with FBI IC3, and contact fraud counsel immediately.
Should we hire a recovery agency?
No. Especially not unsolicited agencies, which are often part of the scam. Work only with licensed firms.
Are some industries at higher risk?
Yes. Manufacturers, technology firms, and service providers are common targets. High-value goods attract fraudsters.
What is a “rapid response” investigation?
A 48–72 hour review by fraud counsel and forensic experts to confirm legitimacy, trace funds, and recommend immediate steps.
When should we involve legal counsel?
Before any international deal above $100,000, and immediately if you suspect fraud.
