KOTRA Prevents 30% of Trade Fraud Cases Reported Last Year

Publication of '2022 Trade Fraud Occurrence Status and Countermeasures'

KOTRA prevented about 40 cases, accounting for approximately 30% of all trade fraud reports received last year. It also published a report compiling the trade fraud cases identified last year for prevention purposes.

KOTRA released the ‘2022 Trade Fraud Occurrence Status and Countermeasures’ report on the 27th, analyzing trade fraud cases reported by overseas trade centers.

KOTRA classified the trade fraud attempts reported last year into seven types and included them in the report. Specifically, these are ▲document forgery (43 cases) ▲poor shipment (38 cases) ▲bribery fraud (13 cases) ▲email fraud (10 cases) ▲payment fraud (9 cases) ▲illegal stay (6 cases) ▲others (6 cases).

KOTRA pointed out that recently, methods have become more sophisticated, such as sending malware or creating fake websites for fraud. KOTRA explained that double or triple verification procedures must be conducted before contracts. KOTRA also advised that the authenticity of transactions should be reviewed through local networks such as overseas trade centers.

KOTRA exterior / Photo by KOTRA

In fact, KOTRA prevented 40 out of a total of 125 trade fraud cases reported through its global overseas trade centers last year by utilizing local information. Although various types of fraud attempts targeted domestic companies, the authenticity of transactions was verified through corporate credibility investigations using the local networks of overseas trade centers, preventing damages.

Kim Tae-ho, Head of KOTRA’s Economic and Trade Cooperation Headquarters, said, “Once trade fraud occurs, it is difficult to resolve issues such as fund recovery, so prevention is most important,” and added, “To this end, KOTRA conducted a total of 11 trade fraud prevention training sessions for our companies last year in cooperation with the National Police Agency and the Korea Trade Insurance Corporation.”

KOTRA is continuing its efforts to prevent trade fraud this year by publishing a casebook on ‘Trade Fraud Occurrence Status and Countermeasures.’ It is also regularly distributing trade fraud prevention content through newsletters. Trade fraud prevention training for domestic businesspeople will be conducted through KOTRA regional support groups and KOTRA Academy.