- The most damaging scam for established importers is a change of bank details sent by a fake or hacked account. Always verify by phone using a number you already hold.
- Prices far below the market, payments to personal accounts and heavy time pressure are classic warning signs.
- Many problems are not outright fraud but quality fade, sample switching or a middleman hiding behind a factory label.
- If you have been scammed, contact your bank immediately. Speed matters more than anything else.
Most overseas suppliers are honest businesses that want repeat customers. But international sourcing suits fraudsters: buyers rarely visit, wire transfers are hard to reverse, and most communication happens by message. Fortunately, most scams follow recognizable patterns. Here are fifteen red flags, how to check each one, and what to do if something goes wrong.
Payment red flags
Payment is where scams turn into losses, so these warnings deserve the most attention.
1. A sudden change of bank details
A message apparently from your regular supplier says their bank account has changed because of an "audit" or "tax issue." It may come from their real, compromised account or a near-identical one. This is often called payment diversion fraud. How to check: call the supplier on a phone number you already have on file, not one in the message, and speak to a person you know. Ask them to confirm the change in writing on company letterhead as well.
2. Payment to a personal account
A legitimate company normally receives payment into an account in its registered company name. A request to pay an individual, a relative of the owner or an unrelated company is a serious warning. How to check: compare the beneficiary name with the business licence and the name on the proforma invoice. If they do not match, stop and ask why.
3. Account in a different country from the supplier
Some groups do have offshore accounts for legitimate reasons, but a supplier in one country asking for payment to a bank somewhere unrelated needs an explanation. How to check: ask for a written reason and confirm it through a known contact.
4. Insistence on 100% upfront for a large order
Full prepayment is normal for samples and small orders. For a significant production run with a new supplier, a refusal to accept any form of deposit-and-balance structure, inspection or bank-backed payment is a reason to slow down. See our guide to international payment terms for safer options.
5. Unofficial payment channels
Requests to pay through gift cards, cryptocurrency, money transfer agents or an "escrow" site you have never heard of are high-risk. Fake escrow websites are built specifically to look trustworthy. Only use payment-protection services you have independently verified and reached by typing their address yourself.
Pricing and pressure red flags
6. Prices far below the market
If one quote is dramatically below all the others, something is missing: it may be a scam, a cheaper material, a smaller size or no certification. How to check: compare quotes on a like-for-like basis using a detailed specification, and calculate the full landed cost rather than looking at unit price alone.
7. Pressure to decide quickly
"Price valid only today," "last container available," or "raw material prices rise tomorrow" are tactics to stop you doing checks. Genuine suppliers do update prices, but they will normally give you reasonable time to verify them.
8. Reluctance to sign a contract or purchase order
A supplier who avoids putting specifications, delivery dates, payment terms and quality standards in writing is leaving room to argue later. A clear purchase order protects both sides.
Identity and credibility red flags
9. A phantom company
The company has a slick website but no verifiable registration, the address leads to a residential building or a virtual office, and the phone only ever goes to one mobile number. How to check: ask for the business licence or company registration and verify it on the official registry of that country where possible. Check how long the website domain has existed, search the company name with words like "fraud" or "complaint," and look for consistency across addresses, phone numbers and names.
10. A trading company posing as a factory
Trading companies often add real value. The problem is when they claim to be the manufacturer, hiding who actually makes your goods. How to check: ask what is listed in the business scope of their licence, request a live video walk-through of the production line, and ask detailed questions about machines, capacity and staff numbers. A factory audit gives the clearest answer.
11. Fake or borrowed certificates
Test reports and certificates can be edited, belong to another company, cover a different product, or have expired. How to check: confirm the certificate holder name matches the supplier, check the product and model listed, and verify the certificate number directly with the issuing test lab or certification body using contact details from the lab's own official website.
12. Stock photos and copied catalogues
Product photos that appear on many unrelated websites suggest the seller has never made the product. Ask for original photos or a short video of the actual item with a note showing your company name and today's date.
Product and quality red flags
13. Sample switching
The sample is excellent, but the bulk order is not. Sometimes the sample was made specially, bought from another factory, or hand-finished in a way mass production never matches. How to check: keep a signed and sealed "golden sample," request production samples taken from the line, and use a pre-shipment inspection that compares bulk goods against the approved sample.
14. Quality fade
Early orders are good, then cheaper materials, thinner packaging or looser tolerances creep in, unannounced. How to check: inspect every order, not just the first one, and keep a written specification that lists materials, weights and finishes. Our quality inspection guide explains how to set this up.
15. Unexplained delays after the deposit
A run of excuses once your deposit is paid, with no production photos, can signal cash-flow trouble, a supplier that has taken on too much work, or an outright scam. How to check: agree production milestones in advance and ask for dated photos or video at each stage. A during-production inspection is useful for longer orders.
A verification routine before you pay
| Check | What you are looking for |
|---|---|
| Company registration | Registered name, address and business scope match what the supplier says |
| Bank beneficiary | Account name matches the registered company name |
| Contact verification | Landline or known number answers, and the same people are reachable over time |
| Video call or visit | Real production floor, relevant machines, consistent branding |
| Certificates | Verified directly with the issuing body |
| References | Contactable buyers, ideally in your own market |
| Sample and specification | Approved sample retained, specification in writing |
For a full process, read how to find and verify suppliers. If you would rather compare several vetted quotes side by side, you can post a buying request with your exact specification.
What to do if you have been scammed
- Contact your bank immediately. Ask them to attempt a recall of the payment and to contact the receiving bank. The faster you act, the better the chance of stopping or freezing funds.
- Stop further payments to the same account and alert your accounts team so nobody pays an outstanding invoice by mistake.
- Preserve evidence. Keep messages, email headers, invoices, payment confirmations, website screenshots and call records.
- Report it to your national police fraud or cybercrime reporting service, and to any platform where you met the supplier. If an email account was compromised, secure it with new passwords and two-factor authentication.
- Get advice from a lawyer familiar with the supplier's country if the amount justifies it. Your trade association or a government trade-support office may also be able to point you to help.
Victims are often contacted by people offering to recover lost money for an upfront fee. Treat unsolicited recovery offers as a second scam.
Frequently asked questions
How do I verify a change of bank details safely?
Call the supplier using a phone number already in your records, not one supplied in the message requesting the change. Speak to someone you know, and ask for written confirmation on company letterhead before any payment goes to the new account.
Is a trading company always a scam?
No. Many trading companies provide genuine services such as consolidation, quality control and communication. The red flag is a trading company falsely claiming to be the factory, because you lose visibility of who makes your goods.
Can my bank get my money back?
Sometimes, especially if you report quickly and the funds have not been withdrawn. Outcomes depend on the banks involved and local rules, so contact your bank as soon as you suspect fraud.
Are marketplace verification badges enough?
They are a useful starting point, but badges vary in what they actually check. Do your own verification of registration, bank details, certificates and production capability.
What is the single most effective protection?
Never pay a large balance without independent evidence that the goods exist and meet your specification, such as a pre-shipment inspection report, and always verify bank details by phone.
Post one buying request — product, quantity, destination — and get matched quotes. Free.
This guide is general education, not legal, tax or customs advice. Rules change and vary by country — confirm details with your customs authority or a licensed broker before you ship. Spotted something out of date? Tell us.