– The paper provides a number of specific measures which buyers, sellers, and banks in
international L/C transactions can take in business to reduce L/C fraud. The option of banks providing
additional services of checking further the validity or authenticity of some documents under the L/C,
by charging additional prices, has reflected the needs of some business parties. However, this is
proposed to be optional rather than compulsory for banks. The lawyers can also play an important role
by adopting preventive legal mentality to help and provide advice to different parties in applying the
preventive and proactive approach. More importantly, the author recommends that buyers or sellers
maintain close cooperation with their banks and lawyers in implementing preventive and proactive
measures.