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. Overseas buyers are advised to protect yourself by verifying seller/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, but never ship the vehicles after receiving the payment.
CASE #1 (Fake BL fraud)
In this case both Japanese seller/exporter and overseas buyer/importer are agreed on 50% deposit and balance 50% against copy of Bill of Lading (BL). After sometime fraudster/scammer 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 scammer seller/exporter will blocked buyer/importer’s telephone number.
Solution (How to protect yourself): Always 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 authentic organizations 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. But the certificate was altered, or tampered, or self generated by scammer seller/exporter using software. The scammer will ask overseas buyer/importer to send money. Overseas buyer/importer will send money and lost it.
Result: overseas buyer/importer will never receive the vehicle or will receive a different faulty and poor condition old vehicle with extremely high mileage or tampered meter.
Solution (How to protect yourself): Always verify contents of copy of “vehicle export certificate” that seller/exporter in Japan has sent to you for receiving payment. Buyer/importer can verify using “vehicle export certificate verification in Japan” by authentic organizations 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 their website, but that car never exist. The pictures of car are mostly stolen pictures copy & paste from the internet. Overseas buyer/importer will attract the condition of car and cheap price. Scammer seller/exporter will issue invoice, overseas buyer/importer will send money. After receiving money, scammer 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 a reliable inspection agency in Japan like Japan Inspection Organization or any other inspection agency 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.