Credit Card Fraud In International Trade

Since reform and opening up, especially after joining the World Trade Organization (WTO), China's foreign trade has developed faster and faster, and become an important role in the international trade gradually. In the international trade, the letter of credit (L/C) is the most common means of payment. L/C is a revolutionary means of payment on the international trade in the 19^th century, it makes both parties of delivery in equal status while fulfilling the contract for the first time, and makes them find the sense of safety again to a certain extent as "Hand over money by one party and deliver goods by the other" before. This kind of means of payment solves the problem of distrust between both parties which hinders the development of the international trade, and offers the facility of financing to both sides of trade at the same time. Therefore, since the 19^th century, this kind of means of payment has developed very fast and has been widely adopted by countries all over the world. It has also been regarded as "blood" and "lifeline" of the international trade."Independent abstract", as an important principle of L/C, makes the trade of L/C separate from the basic deal contract. The bank is free from the deal contract when it pays the fund under L/C, only responsible for examining the apparent authenticity, integrality and consistency of the documents. So long as the documents and the documents, the documents and the letters are consistent, the bank must bear the responsibility for making payment to beneficiary (seller). Such unique mechanism of L/C, while bringing the convenience to the international trade, has left unprincipled fellow the opportunity, too. More and more illegal businessmen utilize this mechanism to swindle others. The role of L/C in our country's foreign trade is becoming more and more important, but because the levels of the international trade employees and the bank's business personnel of our country are not very high generally, and they haven't grasped the rule of WTO and the Uniform Customs and Practice for Documentary Credits well. Meanwhile, the justice relief system is not very perfect, so our country is often the main L/C fraud country.L/C fraud frequently owes to various reasons, one reason is the mechanism of L/C itself, others are the low level of the international trade employees and bad precaution sense of...