Scam Awareness Campaign

Protect Yourself from SBLC and Trade Finance Fraud

 

At Yield 4 Finance, we are totally committed to raising awareness and protecting businesses and investors from fraudulent practices related to SBLC leasing, purchasing, monetization, and fake suppliers. There are many fake firms in the market which can easily trap an investor or entity, by disguised as a popular institution.

 

 

Here Are Some Common Trade Finance Scams To Watch Out For

 

1. SBLC Purchase or Lease Scams

Fraudsters often claim to offer SBLCs for lease or sale at pretty remarkable terms, which sounds promising when they claim to offer high returns or fast funding. In many cases, these SBLCs either don’t even exist, are not issued by recognised issuers, or are not verifiable through standard ATM networks.

 

Red flags include:

1. Use of free email services like Gmail, instead of corporate domains
2. Pressure to act quickly without proper due diligence
3. Promising big values of instruments like 500 Million Euro From HSBC, Deutsche Bank, etc.
4. Fake emails and S.W.I.F.T copies

 

2. SBLC Monetization Scams

Scammers may claim that an SBLC can be monetized easily for immediate cash or funding, whether it is leased or owned. While legitimate monetization is possible in specific, regulated situations, fraudulent providers commit unrealistic returns and often demand large “processing” or facilitation” fees in advance.

 

Warning signs:

1. Gives guaranteed returns without transparent monetization mechanism
2. No recognised or verifiable track record or licensing
3. Refusal to involve regulated financial institutions
4. Unclear or fake proof of SBLC documents

 

3. Fake Suppliers in Transactions

Fraudulent bodies pose as international suppliers and request SBLCs as a form of security payment.

 

Once the SBLC is issued, they may:

1. Vanish without delivering the goods as committed
2. They can show false or fake shipping documents in order to get payment
3. Collaborate with fake inspection agents to falsify compliance documents
4. They are just traders and no actual suppliers are involved.

 

Always verify documentation before proceeding with any trade finance instrument.

 

 

How to Shield your Business

 

1. Verify the SBLC issuer

Ensure the SBLC is issued by an authorized or licensed financial institution. Confirm SWIFT messages directly from the issuer when possible.

 

2. Demand Independent Legal and Financial Advice

Always consult with experienced trade finance advisors and certified financial experts before entering into any SBLC transaction.

 

3. Conduct Background Checks on All Parties

Investigate all and check all the parties that are involved like, issuers, brokers, monetizers, and suppliers.

 

Report Suspicious Activity

If you suspect any fraudulent activity related to SBLCs or trade finance, report it immediately.

1. Contact your local financial regulatory authority
2. Your bank’s compliance department

 

 

Work Only with Trusted and Authorised Partners

At Yield 4 Finance, we deal with approved financial institutions, and carefully inspect trade partners. This helps protect you from fraud and ensure your transactions are safe and secure legally.

 

Our experienced team can help you with:

1. Advice on SBLCs: We guide through the process of getting a Standby Letter of Credit the right way, with reliable institutions.
2. Checking Suppliers: We help confirm that the individuals or entities you are dealing with are real and trustworthy.
3. Making Sure You Follow the Rules: Our experienced experts check that your deals meet all legal and financial regulations so you ensure legal compliance.
4. Reducing Your Business Risks: We help you to avoid potential scams, losses, or non-profitable deals by identifying the risks early and managing them accordingly.

 

 

Stay informed. Stay protected

For any query regarding financial instruments like SBLCs, DLCs, and BG, contact our compliance team.