Serious money is rarely lost to an obvious thief. It is lost to a supplier who was perfectly reasonable for two months and then stopped answering. The scams below are the ones that still catch experienced buyers, because each one looks like normal business until it is not.
The nine scams
1. The disappearing deposit
A convincing supplier, a good price, a 30% deposit to a personal account — then silence. Often the "company" is a rented desk and a phone. Prevention: pay only the company account named on the business licence, and verify the licence first (see our supplier verification checklist).
2. Specification bait and switch
The quote and sample are perfect; the production run uses thinner material, a cheaper foam density, or a lower-grade fabric. This is far more common than outright theft. Prevention: put material grade, weight, density and tolerances in the contract, and inspect against that document, not against a photo.
3. The "factory" that is a trading desk
Not illegal, but you pay factory prices for a resold product, and quality problems are harder to resolve because nobody on the other side controls production. Prevention: ask machine-level questions and require a live video walk-through.
4. Self-issued inspection reports
The supplier sends a beautiful QC report with photos and a stamp. The stamp belongs to the supplier. Prevention: use a third-party inspection firm paid by you, with the report going to your email — never to the supplier first.
5. Payment redirection mid-order
Halfway through production you get an email that looks like your contact: "our bank details have changed, please pay the balance to this new account." This is the single largest source of lost money in B2B imports. Prevention: agree one bank account in the contract; any change must be confirmed by a scheduled video call with a person you already know, and by a scanned, stamped amendment.
6. Freight hidden in a DDP quote
A "door delivered" price that includes freight sounds convenient until you compare it with a freight forwarder's quote: the margin is often 40–100% on top of real cost. Prevention: get an FOB quote plus an independent forwarder quote so you can see both numbers. See our Incoterms guide, and benchmark any "delivered" price with our free landed cost calculator before you accept it.
7. The golden sample
The sample you approve was hand-made by the engineer; the container was not. Prevention: request a "production sample" drawn from the actual run before the balance is paid, and keep the approved sample sealed and referenced in the contract.
8. Borrowed or fake certificates
CE, RoHS, FCC and test reports are sometimes bought, recycled from another product, or issued for a different model. Prevention: check the certificate number with the issuing body where possible, and confirm the model number on the certificate matches yours.
9. Balance-payment pressure
At the end, you are told the goods are ready but cannot ship "until the balance clears", and the price has quietly grown with extra charges for packing, pallets or a "documents fee". Prevention: the contract lists exactly what is included; the balance is paid against a passed inspection, not against a promise.
Red-flag summary
| Signal | Why it matters |
|---|---|
| Payment requested to a personal or mismatched account | No legal recourse, no dispute path |
| Price 30–50% below all other quotes | Different product, or bait pricing |
| Bank details change mid-order | Treat as fraud until proven otherwise |
| Refuses third-party inspection | They know what the inspector will find |
| Wants 100% payment up front | Removes all your leverage |
| Urgency and pressure ("price valid today only") | Creating hurry to skip verification |
| Only WhatsApp, no company email or documents | Nothing traceable when it goes wrong |
Payment structures that protect you
- 30% deposit / 70% before shipment after inspection. The default for small and mid-size orders. The unpaid balance is your leverage.
- Escrow or platform protection (Alibaba Trade Assurance and similar). Better than a bare bank transfer, but it protects the transaction, not the specification — inspect anyway.
- Letter of Credit for orders above roughly $50,000. The bank pays against documents, which removes most of the trust problem — at a cost of several hundred dollars per L/C.
- Never pay 100% in advance to a supplier you have not shipped with twice.
- Use a local presence if you cannot inspect: a sourcing partner on the ground can hold the balance decision, which changes supplier behaviour immediately.
Rule of thumb: the smaller your order, the less protection the bank will give you — which is exactly why small buyers should pay in stages and inspect.
What to do if it happens
- Stop all further payments immediately and put everything in writing.
- Gather evidence: contract, invoices, bank receipts, chat logs, the business licence, photos of goods received.
- File with the platform if the supplier came from one — dispute windows are short, often 30 days from payment.
- Report locally in China: the supplier's local Administration for Market Regulation (12315 hotline) or a police report in the city where the company is registered. A local report carries much more weight than an email from abroad.
- Notify your bank the same day if the transfer is recent — a recall is sometimes possible before funds leave the receiving bank.
- Use local help. Recovery usually depends on someone in China applying pressure in person, which is why buyers work with a sourcing partner.
Frequently asked questions
Is Alibaba Trade Assurance enough protection?
It protects the payment channel, not the product. You still need a written specification and third-party inspection for quality disputes — otherwise a supplier can ship "the product" and win the dispute.
How do I check if a Chinese company is real?
Ask for the business licence and search the 18-digit credit code on gsxt.gov.cn. Compare the legal name with the bank account name. Full process in our supplier verification guide.
Can I get my money back if a Chinese supplier cheats me?
Sometimes, but only with evidence and local pressure. Platform disputes and Chinese market-regulation complaints are the practical routes. Bank recalls work only in the first days. This is why prevention — staged payments and inspection — matters so much more than recovery.
Protect the order before it goes wrong
We verify suppliers, inspect goods, and hold the balance decision on your behalf. Send us your order details and we will tell you where the risk actually sits.