An unusually large first order, an eager new buyer, a deal that feels too good to pass up — this is exactly how most export scams begin. Before you commit inventory, production time, or shipping cost to a new buyer, a short verification process can save you from a very expensive mistake.
Here's a practical due-diligence checklist, the red flags that should slow you down, and which payment terms are actually safe for new buyers.
Why Buyer Verification Matters More Than You Think
In export trade, you often ship before you're fully paid, or produce goods before an LC is confirmed. That gap between shipment and payment is exactly where fraud happens — a verified, credit-checked buyer closes that gap significantly.
Buyer Due-Diligence Checklist
- Confirm company registration — check the buyer's company on their local business/trade registry (e.g. Companies House in the UK, SEC in the US) to confirm it legally exists.
- Check their website and digital footprint — a real importer usually has a functioning website, LinkedIn presence, and some trade history visible online.
- Ask for trade references — request contact details of 2–3 other suppliers the buyer has worked with, and actually call them.
- Verify bank details independently — confirm the beneficiary bank account details directly with your own bank, never solely from an email.
- Do a video call — a short video call with the buyer's team is a simple, effective filter that most fraudulent enquiries won't agree to.
- Start with a trial order — for a brand-new buyer, a smaller trial shipment reduces your exposure while you build trust.
Red Flags of Export Scams
1. Unusually Large First Orders
A brand-new buyer placing a huge order with no negotiation on price or terms is a classic red flag — genuine buyers almost always negotiate.
2. Pressure to Skip Verification or Ship Fast
Urgency ("we need this shipped today, skip the paperwork") is a common tactic to bypass your normal checks.
3. Requests to Ship Before Payment Clears
Be cautious of buyers who ask you to ship against a payment that "is on its way" or a forged-looking payment confirmation screenshot.
4. Mismatched Details
Company name, contact person, email domain and payment/bank details should all logically match. Inconsistencies are worth investigating before proceeding.
5. Refusal to Verify Identity
A legitimate buyer will not hesitate to hop on a call or share verifiable business registration documents when asked politely.
Safest Payment Terms for New Buyers
- Advance payment (partial or full) — the lowest-risk option for a first-time, unverified buyer.
- Confirmed Letter of Credit — adds a bank guarantee of payment, especially useful for larger orders. Use our LC Document Checklist Generator to keep your documents discrepancy-free.
- Documents against Payment (D/P) — safer than open account since documents (and effectively the goods) are released only after payment.
- Open account terms — reserve this for buyers you've built a solid payment history with over multiple orders.
Shipping under an LC with a new buyer?
Make sure every document is discrepancy-free before you present to the bank.
Open Free LC Checklist GeneratorFrequently Asked Questions
How do I check if a foreign buyer is genuine?
Verify company registration on the local business registry, check their website and trade history, ask for references from other suppliers, and start with a smaller trial order before scaling up.
What is the safest payment term for a new buyer?
Advance payment or a confirmed Letter of Credit are the safest options for new, unverified buyers. Open account terms should be reserved for buyers you've built a payment history with.
What are common signs of an export scam?
Unusually large first orders, urgency to skip due diligence, requests to ship before payment clears, mismatched company and payment details, and refusal to video call or share verifiable business documents.
Conclusion
A few hours of verification can save months of losses. Treat every new buyer enquiry with the same due-diligence discipline, regardless of how promising the order looks — genuine buyers will never mind being verified.
Browse verified buyer enquiries and connect safely through our Buyer Directory, or explore more export business tools.