By Sosthenes Bichang’a, CFE, CPA (K)

The businessman or woman involved in international trade could be exposed to the following fraud risks:

• Being conned into flying to another country by kidnappers pretending to be genuine business partners.
• Advance fees for processing fictitious lottery wins.
• Being asked to send shipping charges for free items from unknown people.
• Shipping goods to buyers in advance of payment or proper sale agreements.

The following tips will help you play it cool and safe all the time.

• Try to understand your business partner well before any substantial transaction(s). One should seek reference from a trade association of the partner’s country or arrange for introductions through the partner’s government representative at the Embassy.
• Always control lust for free things. Who can give you free items and yet he or she does not know you well?
• Always carry out due diligence in all international business and financial transactions.
• Seek advice from a consultant and have an export or import agreement before transacting business.
• Negotiate for deposit with order.
• Incases where you are invited to another country, always involve your country’s representative in that country and make his office the first contact place with customer or client.

Biography

Sosthenes N. Bichang’a is Certified Fraud Examiner (CFE), Member institute of Internal Auditors as well as Association of Certified Fraud Examiners ( ACFE) Kenya Chapter. An experienced accountant/Fraud Auditing Trainer. Currently focusing on research in fraud auditing and subjects of contemporary interest. He has over twenty years experience in accounting/auditing. The Author of ‘Intelligent Fraud Fighting’ article published in the ‘Internal Auditor’ of February, 2007.