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How to avoid fraud in B2B trade

Most B2B fraud follows a few familiar patterns. Once you know them, they are easy to avoid. Here are the common traps and how to stay clear.

The advance-payment trap

A price too good to be true, urgency to pay, and a demand for full advance to a new supplier is the classic setup. Slow down, verify the business, and never send the full amount upfront to someone you have not dealt with.

The quality switch

The sample is excellent, the bulk order is not. Protect against this by placing a small first order after the sample, inspecting on arrival, and holding a part of the payment until you confirm the batch matches.

Fake identity and impersonation

Some fraudsters copy a real company's name or GSTIN. Confirm bank details belong to the registered business name, and be cautious if payment is requested to a personal account or a name that does not match.

Keep a paper trail

Agree specification, quantity, price, terms and delivery in writing, and keep your payment records. A clear trail deters fraud and gives you standing if a dispute goes further.

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