Quote from chief_editor on September 29, 2023, 10:12 am

In today's digital age, the increasing internet penetration across Africa has come with both benefits and downsides. While the continent has seen massive strides in connectivity and online business opportunities, it has also become a hotspot for cybercrimes, especially scams targeting international trade. According to Interpol's Online Scams Report, Africa experiences a substantial loss in its GDP due to online scams.

This article dives into the current scams to be wary of in 2023, particularly for those involved in international trade in Africa.

1. Fake Export/Import Websites: Building on the already existing online shopping scams, fraudsters are now creating websites that mimic legitimate export or import businesses. For instance, a European company in 2018 was lured by a website offering premium African cocoa. They made a substantial upfront payment, but the goods never arrived. International traders are advised to be wary of such practices.
2. Email Phishing Scams Targeting Traders: Fraudsters now craft emails imitating reputable trading bodies or even African governments. For example, in 2019, a trader in Germany received a seemingly official email from an African government department that claimed there were new tax regulations requiring immediate payment. Such scams are evolving in their sophistication.
3. Bogus Trading Platforms: With the rise of online trading platforms, some are mere facades for scams. A group of investors, in 2020, was lured by a platform promising high returns on Tanzanian gold. After pooling in their funds, the platform disappeared without a trace.
4. Fake Customs and Tariff Scams: Traders are sometimes contacted by "officials" with fraudulent claims. A US-based electronics company, in 2017, was informed their products were held at South African customs and was asked to pay an urgent clearance fee. After payment, the goods were never released.
5. Supplier and Buyer Impersonation: Scammers sometimes impersonate established suppliers or buyers. A French wine importer in 2019 received an email supposedly from their regular South African supplier, urging a change in payment details. The importer transferred money, only to find out they'd been scammed.
6. Fraudulent Shipping Companies: Fake shipping companies can offer tantalizing rates to lure traders. European antique dealers in 2018 hired a shipping company based on competitive rates. The company disappeared after collecting the items.
7. Counterfeit Product Scams: International traders might think they're purchasing genuine African products, only to be disappointed upon delivery. A US retailer in 2020 ordered handcrafted Nigerian leather goods and instead received poor-quality counterfeits.

Protection Tips for International Traders:

• Verify Before You Trust: Always verify new trading partners, shipping companies, or any changes in trade procedures. Use official channels and avoid relying solely on email communications.
• Use Trusted Platforms: If trading through online platforms, ensure they're reputable. Check reviews and consult with peers in the industry.
• Educate Yourself: Familiarize yourself with African trading norms, customs protocols, and tariff systems.
• Use Secure Payment Methods: Avoid wiring money unless you're sure of the recipient. Consider using a letter of credit or escrow services, especially with new trading partners.
• Stay Updated: Scams evolve. Regularly check updates from international trade bodies and African trade and commerce departments.

In conclusion, Africa presents immense trading opportunities. However, with the increasing sophistication of online scams, international traders need to be vigilant. By being informed, verifying sources, and staying cautious, traders can reap the benefits of the African market while minimizing risks.