Buyer impersonations: A growing threat in international trade

In today's complex international trade environment, buyer impersonation is rising. Criminals impersonate established companies to place orders, often requesting delivery to rogue addresses or offering to pick up goods themselves. Suppliers then invoice the legitimate company, only to learn the goods were not ordered by them. 

Several red flags can indicate buyer impersonation. The Atradius Buyer Impersonations factsheet, created by the Special Risk Management (SRM) team, shows their deep understanding of international trade and their commitment to helping our stakeholders reduce risks and improve security. 

The impact of AI 

Buyer impersonation is becoming more common in B2B commerce. Fraud schemes are leveraging geographical distances, varying business cultures, and the ease of doing business. According to the Federal Trade Commission (FTC), buyer impersonation scams have significantly risen. In 2023, the FTC received over 330,000 reports of business impersonation scams and nearly 160,000 reports of government impersonation scams, with reported losses exceeding $1.1 billion.  

AI has impacted buyer impersonation in international trade. Advanced AI technologies enable fraudsters to create convincing fake identities and sophisticated schemes. These AI-driven tactics can mimic communication styles, simulate voices, and generate realistic images, making it hard for businesses to distinguish genuine from fraudulent interactions. This increases the risk of financial loss and reputational damage, highlighting the need for robust security measures and vigilant monitoring. 

Credit insurance covers non-payment when the debtor has received the goods or services. In buyer impersonation cases, this condition is not met due to fraud. Therefore, companies must stay vigilant. Regularly reviewing security measures and training staff to recognise red flags are essential steps in safeguarding against these threats. 

Interested in finding out more? 

To learn key points and measures to take, download the Atradius Buyer Impersonations factsheet in the related documents section below. 

To explore how to strengthen your own credit risk strategy, get in touch with us and see how we can help you stay ahead.