We would like to report another scam. This is a true story; hence,
we will not mention the names here. The modus operandi will be clear
from the description below.
An Indian company, I, received an order from an African company, A,
for an X amount. The African company, A, sent a check for the full
amount, X, issued by a US firm, U, in favor of the Indian firm, I.
The reason given for this was that U and A were business associates
and since U owes A some money, this amount was being sent directly by
U to I. The African firm, A, also forwarded a letter, apparently,
written by U to A stating this.
Upon receiving the check, the Indian firm, I, deposited it with
their bankers in India. On behalf of their client, the bankers sought
permission from the Federal Bank (called the Reserve Bank of India)
for this transaction. The Federal Bank gave their permission as a
special case and said that they would allow this transaction provided
the full amount was deposited into I’s account before the goods were
Subsequently, the check cleared after about 30 days and, in
addition, a cooling period of 21 days was observed. After this, the
goods were shipped out and the African firm, A, confirmed having
received the goods.
However, the US bank has now intimated the Indian bank saying that
the check was forged and asked them to return the full amount.
Accordingly, the Indian bank intimated their client, I, and, in the
meanwhile, froze their client’s account.