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Non-delivery fraud

One type of business fraud identified by the FBI, is non-delivery of merchandise. This often happens to consumers who buy online and simply never receive what they paid for.

Say for example, you find a good deal from a remote supplier, send your payment electronically, and then hear nothing back. The supposed delivery day passes, still nothing. When you try to contact the company, no one responds. Finally, you noticed that they have entirely shut down their website.

Prevalent scamming tactics like this can cost you in several ways. First, you lose the money that you invested in the actual products or materials. Secondly, if not having those specific parts means that you now cannot produce your own products, you are losing potential sales.

Ironically, this scam could also mean that you as a businessperson are not able to produce and deliver your own orders on time. From this, consumers may be angry at the delays or think that they themselves have been scammed. This involvement in these scamming tactics can tarnish your reputation and unfortunately, an incident like this could be the greatest financial hit your company may encounter in its active lifespan.

If this does happen to you, it is crucial that you are aware of your legal options. The overseas business world is complicated, so to find out what steps to take when you’re dealing with a foreign company that won’t follow through with deliveries, please contact us at your earliest convenience. We have the experience and knowledge to help guide you through the process.

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