In 2025, Ukrainian businesses operating in foreign markets are increasingly facing fraudulent schemes. Geopolitical instability, broad use of digital tools, and the complexity of international legal relations make foreign economic activity (FEA) especially vulnerable to criminal actions and fraud. In a situation where the State Tax Service is developing specific recommendations, legal practice becomes critical — legal support allows the taxpayer to act lawfully and effectively in case of fraud.

1. Types of fraud in the field of FEA

The following types of fraud are most often reported in international trade:

• Creation of fake companies that disappear immediately after receiving advance payments;
• Use of shell counterparties with forged documents or altered bank details;
• Interception of business email correspondence followed by misdirected transfers to third parties;
• Manipulation with payment deferrals or forged transport documents.

Both new companies with minimal history and unexpected changes in contacts of established partners remain significant risk factors.

2. What does the State Tax Service recommend: immediate actions

A taxpayer who becomes a victim of fraud during a FEA transaction must act quickly. The latest recommendations from the tax authorities suggest the following algorithm:

• Immediately contact law enforcement authorities. A criminal proceeding serves as evidence of fraudulent actions and is the basis for further protection of interests in court.
• Apply to court or arbitration (depending on the contract provisions) to enforce collection of debt from a non-resident. This also suspends the period for currency settlement in FEA and the accrual of penalties.
• Document all organizational and legal evidence: keep correspondence, payments, documents from counterparties, notifications to the bank about the incident; certify all these materials properly.
• Check the possibility of obtaining a force majeure certificate from the Ukrainian Chamber of Commerce and Industry or the authorized body of the non-resident’s country. This ensures legal protection in case of a dispute over overdue payments and fines.
• Notify the tax authorities about the incident via the “taxpayer’s electronic office” and provide supporting documents.

3. Legal viewpoint: additional advice for business

Considering current practice, a law firm recommends:

• Consolidate all evidence: every detail — from messenger and email texts to financial transactions — must be documented and preserved; in court, this is the key to proving fraud.
• Engage external experts: lawyers specialized in international disputes can promptly analyze the contract, determine the jurisdiction for consideration, and the best way to secure the counterparty’s obligations.
• Cooperate with your bank: immediately inform the bank of the fraud — some funds may not have been withdrawn yet, so it may be possible to dispute transactions and block suspicious payments.
• Conduct independent audits and consultations: express analysis of fund flows, third-party involvement, and a comprehensive anti-crisis audit makes it possible to timely identify and localize risks.

4. Pre-trial and judicial settlement

Not all cases of fraud immediately become criminal cases. Often, disputes due to non-fulfillment of obligations or suspicious transactions are considered in commercial or civil proceedings.

• Pre-trial settlement: sending official claims, participation of lawyers in negotiations, and signing a settlement agreement can save time and reduce reputational and financial risks.
• Arbitration claims: if the contract contains an arbitration clause, disputes may be adjudicated not necessarily in Ukraine but in any selected jurisdiction. It is important to engage lawyers with international experience.

5. Preventing FEA fraud: the role of the lawyer in transaction support

The best legal protection is prevention. The following recommendations help to avoid typical fraudulent schemes:

• Thorough due diligence of the counterparty: use of open registries, analysis of financial history, partner feedback, verification of signatory’s reputation and authority.
• Strict compliance procedures: establish clear communication channels, fix payment terms, specify arbitration mechanisms, and allocate responsibility.
• Employee cyber-hygiene: given the rise in phishing attacks, conduct training, ensure safe handling of business information, use official email domains, and do not open unsolicited attachments or links.
• Advance payment only with guarantees: make agreements using letters of credit, escrow/trust accounts, or export-import insurance.

6. Legal consequences and business opportunities

• Settlement deadlines. If a contract with a non-resident is not performed due to fraud, criminal proceedings and/or obtaining a force majeure certificate suspends the accrual of penalties as per the law.
• Possibility of tax confirmation. By proving your good faith to the tax authorities and documenting the fraud, a taxpayer can avoid additional tax liabilities or penalties for late currency settlement.

Conclusion: legal support is the key to business preservation

Recent legal practice proves that timely response, comprehensive legal support, and effective fraud prevention in FEA can minimize financial and reputational losses for business. Use of official communication channels, documenting all actions, and prompt notification of law enforcement and tax authorities form the foundation of business protection strategy on the international market.

The material is prepared based on current practice in supporting FEA contracts and recommendations of relevant authorities as of 2025.

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Author: Ihor Yasko, Managing Partner, Law Firm “WINNER”, PhD in Law.