Please understand that trade finance includes both physical and financial international transactions, as well as a diversified set of parties, languages, government units, and other factors. So, I believe that this situation tends to make it appealing to scammers and financial felons of all types. Fraud in financial transactions can manifest itself in a variety of ways. 1. Laundering of funds 2. Authenticity of transactions 3. Impersonation by different parties 4. Showing trades that did not actually take place 5. Outright Cheating in various ways 6. Involvement of Bank Accounts of people not a part of the transactions
I concur that trade finance is appealing to conmen, but it’s also a field where fraud is much simpler to spot and stop. The various types of trade finance fraud are as follows: a) Cheating and criminal trust breaches b) Bogus encasement using forged instruments; c) Unauthorized credit facilities stretched for remuneration or illegal fulfilment; and d) Recklessness and cash scarcities. e) Fraud and counterfeiting f) Inconsistencies in foreign exchange transactions.