Commercial Service Tips on Background Checks

A due diligence review is a quick background check on an individual, foreign firm, or project. This type of report includes information on whether a company exists, the company address, the person’s position, or any news or legal articles about the subject found via viable platforms. While this preliminary check is intended to verify the existence of the company and determine any red flags, it is not intended to replace in-country due diligence done via the International Company Profile. 

Red Flags for contact/website information
•    If there is limited information on a company after searching multiple databases it is more likely to be a scam 
•    No management pictures or description of management experience on the website
•    Outdated copyright for website and/or website looks unfinished or superficial
•    Mismatch with domain name extension when you hover over the sender’s email address
•    P.O. box for the main address listed in the email 

The presence of any single red flag usually does not guarantee that the company/entity is illegitimate, but more red flags signal less likelihood that the entity is authentic.

Scam Reporting, Education & Toolkits
•    USAgov – government websites to report different kinds of scams/fraud.
•    Econsumer.gov - Report international scams to consumer protection agencies.
•    Cybersecurity & Infrastructure Security Agency - A Federal Government website that offers free online tools, precautionary steps, and cyber safety education to users. 
•    Minimizing Fraud - A short article from the International Trade Administration with some simple steps to reduce exposure to credit card fraud.
•    StopFakes - One-stop shop for intellectual property protection resources
 
Country / Company Due Diligence
•    Country Commercial Guides - U.S. Commercial Service business guides by country.
•    Special 301 Reports – US Trade Representative Annual Report highlighting IP protection issues by country
•    Foreign Trade Barriers Report – US Trade Representative Annual Report on Foreign Trade Barriers by country (2022 report)
•    Consolidated Screening List - search multiple US government restricted parties lists

Fee-Based Services
•    U.S. Commercial Service (CS) International Company Profile: in-depth background check on a specific foreign company, conducted by in-country CS staff

To read stories on how rural exporters avoid scams, click here to read “How to Avoid Scammers and Win at Exporting.”