How to protect against vehicle export frauds & scams
While the vast majority of car exporters in Japan are operate with normal business ethics, a small percentage engage in deceptive practices or scams. Protect yourself by verifying dealer credibility, scrutinizing official documents, and ensuring secure payment methods like letter of credit or Japan trust pay etc. before finalizing any purchase is recommended.
The Japan Trade Organization has received reports about used vehicles export scammers. Below are the cases in which overseas buyers/importers have transferred money to entities that claim to be authentic second-hand vehicle exporters in Japan never ship the vehicles after receiving the payment.
CASE #1 (Fake BL fraud)
Both Japanese seller/exporter and overseas buyer/importer are agreed on 50% deposit and balance 50% upon sending Bill of Lading (BL) copy. Overseas buyer will send 50% deposit. After sometime fraudster seller/exporter will send fake bill of lading (B/L) asking for balance payment. Overseas buyer/importer will send balance 50% payment, but will never receive vehicle.
Result
Overseas buyer/importer will never receive vehicle. All communications will be stopped and buyer/importer’s telephone number will be blocked.
Solution (How to protect yourself)
Verify contents of bill of lading copy that seller/exporter in Japan has sent to you for receiving balance payment, using “BL verification in Japan by Japan Inspection Organization or any other relevant agency.
CASE #2 (Fake export certificate fraud)
Fraud seller/exporter will send fake “Japanese vehicle export certificate” to overseas buyer/importer. The fake certificate showing new model of vehicle with very less mileage. Actually, the certificate was altered, or tampered, or self generated by fraud seller/exporter using software. The fraudster will ask overseas buyer/importer to send money. Overseas buyer/importer will send money.
Result
overseas buyer/importer will never receive the vehicle or will receive a different faulty poor condition old vehicle with extremely high mileage or tampered meter.
Solution (How to protect yourself)
Verify contents of “vehicle export certificate” copy that seller/exporter in Japan has sent to you for receiving payment, using “vehicle export certificate verification in Japan” by Japan Inspection Organization or any other relevant agency.
CASE #3 (False sold out information)
Fraud seller/exporter will post good looking pictures of car with low mileage and very cheap price on the website, but that car never exist. The pictures of car are mostly copy & paste from the internet. Overseas buyer/importer will attract the condition of car and cheap price. Fraud seller/exporter will issue invoice, overseas buyer/importer will send money. After receiving money, fraud seller/exporter will inform to the buyer/importer that “car was sold to other customer” or “car has failed the inspection” or “car has failed radiation test” and we’ll send you other car or will refund full amount.
Result
Overseas buyer/importer will never receive another vehicle or refund. All communications will be stopped and buyer/importer’s telephone number will be blocked.
Solution (How to protect yourself):
Use Japan Inspection Organization or any other reliable inspection agency in Japan for physical inspection of vehicle before sending money.
CASE #4 (Car export fake websites)
Fraudster/scammer create professional-looking websites by using ready-made car dealer website templates. Scammers also publish social media pages posing as Japanese used vehicle seller/exporter. Once buyer/importer send the money by bank wire transfer, they will disappeared and never ship the car. All communications will be stopped and buyer/importer’s telephone number will be blocked.
Result
Overseas buyer/importer will never receive the vehicle. All communications will be stopped and buyer/importer’s telephone number will be blocked.
Solution (How to protect yourself)
Strictly ask the seller/exporter if their company is verified by Japan Anti Fraud Organization. Also ask for copy of their company registration document even in Japanese language, and verify the contents by Japan Anti Fraud Organization (JAFO) or Japan Inspection Organization (JIO) or any other relevant agency in Japan.