Every metal exporter gets them: enquiries that look like big orders but turn out to be scams. Fake buyers ask for "registration fees", forged letters of credit, sample shipments that never get paid or changed bank details at the last minute. Learning to verify overseas buyers protects your money, your goods and your time.
Common export scams in the metal trade
1. The "fee" scam
A buyer sends a large enquiry, approves your price almost instantly and then asks you to pay a fee — for "import licence", "registration with the buyer's ministry", "quality certificate" or "contract stamping". Once paid, they vanish. Genuine buyers do not ask suppliers to pay fees to receive orders.
2. Fake or unworkable letters of credit
A buyer sends an LC copy by email or a PDF "SWIFT", or an LC with impossible conditions — such as documents only the buyer can issue. You produce and ship, then find the LC was fake or never payable.
3. Business email compromise (BEC)
Fraudsters hack or imitate an email account and send "updated bank details" to a buyer or to you. Payments go to the fraudster's account. This affects both genuine buyers and suppliers.
4. Sample and small-order scams
A "buyer" requests free samples with expensive courier, or a small trial order on credit, then disappears.
5. Identity theft of real companies
Scammers use the name and address of a real, well-known company but with a different domain or free email address.
Red flags in enquiries
- Free email addresses (gmail, yahoo, outlook) for a supposedly large company.
- Email domains that differ slightly from the real company's website.
- Very large quantities with almost no technical detail.
- Immediate price acceptance with no negotiation.
- Pressure and urgency: "need proforma today", "ship this week".
- Requests for fees, stamps, certificates or deposits.
- Refusal to join a video call or share company documents.
- Payment terms that favour them heavily for a first order.
Free checks you can run in 30 minutes
- Company registry: look up the company in official registers — for example, UK Companies House, national trade registers in Europe, or trade licence portals in the UAE. OpenCorporates also aggregates many registries.
- Website and domain: check the domain age with a WHOIS lookup. A "30-year-old company" with a domain registered last month is suspicious.
- Email match: the email domain should match the official website.
- Phone and address: call the number listed on the official website, not the one in the email. Check the address on a map.
- LinkedIn: look for the company page and the person contacting you. Do they really work there?
- Trade data: see whether the company actually imports your product. Our guide on finding importers with trade data explains how.
- Search for complaints: search the company name with words like "scam" or "fraud".
Deeper checks for larger orders
- Credit reports from agencies such as ECGC or commercial credit bureaus.
- Bank references through your bank.
- Trade references from the buyer's other suppliers.
- Embassy or trade commission support — Indian missions can sometimes help verify companies abroad.
- Video call with a factory or office tour.
Verifying a letter of credit
- A genuine LC is transmitted bank to bank via SWIFT (MT700), not just emailed to you.
- Ask your bank (the advising bank) to confirm authenticity before you produce anything.
- Check that the issuing bank is real and reputable.
- Read every condition. Avoid clauses that let the buyer control payment, such as documents signed only by the buyer.
- For risky countries or banks, ask for confirmation by a bank you trust.
Our letter of credit guide covers LC terms in detail.
Protecting against bank detail fraud
- Put your bank details on your proforma invoice and never change them by email alone.
- If you must change details, confirm by phone with a known contact.
- Tell your buyers: "We will never change our bank details by email."
- Use strong passwords and two-factor authentication on email accounts.
Use payment terms as protection
Even after verification, protect first orders with safe terms: advance, part advance with balance against BL copy, or a confirmed LC. Read export payment terms explained.
Turn verification into a routine
Create a simple checklist for every new buyer and record the results in your CRM or lead sheet. It takes minutes per enquiry and saves months of trouble. When genuine buyers see you are careful, they respect you more, not less.
If you run outreach campaigns, starting with verified importer lists reduces risk from the beginning. MetalMitra's buyer outreach service targets real importers sourced from trade data.
Frequently asked questions
Should I ever pay a fee to get an export order?
No. Requests for fees, stamps or registration payments from a buyer are classic scam signs.
How can I check if an LC is genuine?
Ask your bank to authenticate it. Genuine LCs come through the banking SWIFT network, not as email attachments.
Is a free email address always a scam?
Not always — some small genuine buyers use them — but it is a reason to verify more carefully.
What should I do if I suspect fraud?
Stop all work and payments, verify independently, and report to your bank and the relevant authorities if fraud is confirmed.
Key takeaways
- Genuine buyers never ask suppliers to pay fees for orders.
- Check registries, domains, LinkedIn and trade data before sending proformas.
- Authenticate LCs through your bank and control original documents.
- Use safe payment terms for first orders.
A few minutes of checking can save a container worth of steel — make verification a habit.
