Purpose – This study analyzes the scope of due diligence and risks of banks and K-Sure in trade finance covered by EFF focusing on Moneual case, one of the latest and biggest trade finance fraud cases in Korea. Also, we suggest anti-fraud measures in trade finance on the part of banks and K-Sure in order to give them a desirable way of due diligence and reasonable risk management of export insurance. Design/methodology – Based on Moneual case of trade finance fraud, this study employs the methodology of an extended literature review and analysis of court decisions. Findings – Seoul High Court of Korea failed to decide whether K-Sure was wholly obliged to pay the insurance against the banks’ EFF claims, but issued a compulsory mediation order, judging that both the banks and K-Sure were responsible by 50:50. The court may have judged that both the parties had lacked their due diligence in the trade finance. It is quite difficult for trade finance providers to manually investigate whether the transaction is suspected of trade finance fraud, so digitalization of trade finance which can facilitate the prevention and detection of trade fraud needs to be realized quickly. Since there has been no international rule available for open account trade finance up till now, clearly stipulated EFF terms on the exporter’s genuine export obligation might have protected K-Sure from the disaster. Originality/value – This study investigates the due diligence of the banks and K-Sure in Moneual case which few researchers have considered, to the best of our knowledge. This study also suggests several practical methods (including block chain) to prevent complicating trade finance fraud amid increasing use of an open account, and further offers reasonable risk management of EFF employing international factoring rule which is also related to problematic open account trade finance.

中文翻译：

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国际供应链金融中的反欺诈：关注单数案例

目的–本研究分析了EFF涵盖的贸易融资中银行和K-Sure的尽职调查范围和风险，重点是单数案件，这是韩国最新，规模最大的贸易融资欺诈案件之一。另外，我们建议银行和K-Sure采取贸易融资方面的反欺诈措施，以便为它们提供理想的尽职调查方法和合理的出口保险风险管理方法。设计/方法论–基于贸易融资欺诈的单例案例，本研究采用扩展文献回顾和法院判决分析的方法。调查结果–韩国首尔高等法院未能裁定K-Sure是否完全有义务为银行的EFF索赔支付保险金，但发布了强制性调解令，判定银行和K-Sure在50:50之前均负有责任。法院可能已经判定双方在贸易融资方面都没有尽职调查。贸易融资提供者很难手动调查交易是否涉嫌贸易融资欺诈，因此需要快速实现可以促进预防和检测贸易欺诈的贸易金融数字化。到目前为止，由于尚无开放帐户贸易融资的国际规则，因此明确规定出口商的真实出口义务的联邦紧急融资条款可能使K-Sure免受灾难的影响。原创性/价值–这项研究调查了银行和K-Sure在单人案件中的尽职调查，据我们所知，很少有人对此进行过考虑。