Knowledge

While DLCs provide stronger protection in theory (as payment is tied to verified documents), they are not immune to fraud. In fact, DLC scams in commodity trade share many similarities with SBLC frauds, such as forged documents, advance fees, and intermediary chains. Based on industry reports and cases, DLC frauds cause billions in annual losses, often exploiting the document-based nature of these instruments. Below, I'll analyze common DLC scams in bulk trade, drawing parallels to SBLC issues.