Tuesday, December 13, 2011

There are 7 billion people in the world today. Access to communication to any country is possible as long as you have an internet connection and a laptop or mobile devise. Overpopulation is now a fact of live, and we are all living closer and more connected than ever. More than ever, people can be up to date with information about anything and anyone, from family members to businesses and local matters impacting lives around the globe. The world has become one.

Since cybercrime and global business activity is rising, companies around the world are taking international due diligence more seriously and are engaging to services to lessen management risks as much as possible before moving forward in business around the world.

American companies used to trust one another as business ethics and people’s word was taken seriously. But what about other countries based in Latin America, China, Malaysia, Russia or even Africa? Business culture is completely different in other countries, and ethics and morals vary, depending the given country and company. In short, to remain profitable and protect your business and shareholders, no one can be trusted. Everyone should be verified and vetted.

Serious and visionary business people, most of them top executives interested in expanding into other markets are more interested in contracting an international private investigator to conduct due diligence on prospective business deals, foreign management, and international investments. In many cases, it simply isn’t possible for an in house team to verify a business in another country where the language, rule of law, culture and transparency is different. To properly hedge risk, a professional verification and due diligence service with a team on the ground is often required.

There are serious and good companies out there that are eager to help. There are also shortage of criminals claiming to be reputable companies, not to mention all the fake companies and fraudulent investments out there. Yes, China is booming. But how do you know the Chinese mining company you’re dealing with is legitimate? Or how do you know the supplier in Kuala Lumpur, Malaysia is as reputable as they claim? And how can you be sure a gold company is Ghana truly has the export capability that they are claiming? It’s a high risk game with high stakes. Insurance is advised and a professional can help you make an informed decision with international due diligence.

With the recent trade agreement efforts between the Obama Administration and China regarding a possible trade agreement, international investment and trade should continue to rise. As new start ups and relationships in China form, so too with the risk from fraud and scams.

China has become a powerful and strong economy, unfortunately despite the suffering and exploitation of its people. And it is going to be interesting how the U.S. will handle the manner Chinese entrepreneurs have to conduct business. For sure, it will be a challenge for both nations.

Business scams, advance fee fraud, stock markets scams and business fraud in general is a major problem in China and Southeast Asia. Verifying new contacts and companies is more important than ever. As China continues to develop, slowly, transparency should improve.

Best of luck,

A Hathaway
© 2011 A Hathaway
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