Internet scams

[gougou]

SourceJuice has a useful list out on how to avoid getting scammed.

[flameproof]

6. Use A Letter Of Credit

Never send money Western Union or to a personal bank account. Watch out for Paypal, although sometimes it can be legitimate. Never pay in full up front unless someone on the ground has inspected the goods. Even the typical 30% up front for TT payment is risky when working with a new supplier. Using an LC is the safest way. The factory has the assurance of the bank and payment isn’t released until the goods arrive. True you still don’t have the ability to inspect the goods for quality issues before payment is released, but financially it’s the safest route.

It's not practical and partly wrong. Firstly, for an L/C the cost is very high. Usually a few $100. Secondly, "payment isn’t released until the goods arrive" is a wrong statement. The money is paid (or payment day is counted) from the day the bank receives the documents. Even if the shipment is fraudulent, the bank must pay if the documents are in order. L/Cs are only about documents, not about goods.