Protecting Yourself Against “Letter of Credit” Fraud

Today’s tip is to help protect you from “Letter of Credit” Fraud.

You should know that Letters of Credit are never sold or offered as investments, according to the FBI. They are issued by banks to ensure payment for goods shipped in connection with international trade.

Letters of Credit frauds are often attempted against banks by providing false documentation to show that goods were shipped, when in fact they were not.

Other similar fraud occurs when a con artist offers a “Letter of Credit” or “bank guarantee” as an investment, and promises huge returns of 100 to 300 percent annually.

Such investments simply do not exist.

Here are 4 tips to help you avoid this type of fraud…

1. If it appears too good to be true, it probably is.

2. Do not invest in a Letter of Credit, they do not exist.

3. Be wary of any investment that offers the promise of extremely high returns.

4. Do not invest in anything unless you understand the deal. Con artists rely on complex transactions and trickery to entice you into investing.

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