The internet is full of complaints indicating that scammers invent business and financial connections and claim to have access to international commodity markets in order to sell fake SBLCs, causing significant financial losses for their victims. These scammers assert that they have ties to major banks for obtaining such instruments and use their supposed business, which allegedly has easy access to large sums of money.
First, let’s clarify what an SBLC is.
An SBLC (Standby Letter of Credit) is a financial instrument issued by a bank on behalf of the bank’s clients, serving as a guarantee for borrowing money, and is considered a form of credit. An SBLC can be used to obtain financing and must be fully collateralized, allowing the bank to recover the entire amount in case the contract terms are not met. SBLCs are commonly used in commercial activities and international trade. Although they are sometimes used to secure investment returns, they are not investment instruments themselves. They are not traded, bought, or sold.
The perpetrators of fraud also use fake (often hand-drawn) SWIFT messages or documents, such as “MT799” or “MT760”, to demonstrate their ability to issue SBLCs and mislead potential investors. It is important to understand that SWIFT is a messaging network used by financial institutions to securely transmit information and instructions through a standardized code system. Fraudsters craft their SWIFT messages and documents to appear legitimate, creating a false sense of security in their victims when carrying out their schemes. Additionally, due to the technical nature of SWIFT messages and SBLC transactions, fraudsters can exploit the lack of knowledge (or incompetence) of their victims in these matters.
Main Features of the Fraud:
— Offering returns or credit disproportionate to the risk;
— Mimicking legitimate financial instruments like SBLC;
— “Locking of funds” or “Confirmation of funds”, typically using SWIFT MT 799 or MT 760;
— Requesting an upfront fee before starting financing, loan initiation, or investment;
— Incorrect references to financial institutions;
— Elaborate explanations and excuses for why the promised funds or returns have not materialized;
— Use of escrow accounts (trustees), including lawyers’, banks’, or notaries’ accounts;
— The term “monetization” of the instrument;
While not every scam will include all these elements, some of them typically appear. However, the defining characteristic is the promise of disproportionately high profits or loans without risk from a source that is unclear or unverified.
How to Protect Yourself:
– If an opportunity seems too good to be true, it probably is.
– Do not attempt to purchase or invest in SBLCs. Such investments do not exist.
– Verify all terms of any investment or purchase you are about to make, including all parties involved (for example, the bank from which the funds are coming).
P.S. According to the first rule of this group (No to fraud), we will assist you in actively fighting against them. If you believe you have fallen victim to this type of scam, regardless of the amount you have lost, we will help you file a report with law enforcement authorities. The more reports of fraud and scams that are submitted, the better law enforcement can address these issues.