Fraud against foreign buyers in China within the scope of international trade is a reality, often occurring when buyers engage in transactions without conducting thorough due diligence on their suppliers. The most common methods include:

1. Fake Companies or Factories

A company presents itself as a manufacturer, whereas:

• No such factory exists, or
• It is merely an unreliable middleman.

After receiving payment, the goods are either never shipped or are of extremely low quality.

2. Bank Account Switching (Last-Minute Fraud)

One of the most common scams:

• Following the agreement, a fraudulent email is sent.
• They claim the company’s bank account has changed.
• The money is transferred to the fraudster’s account.

3. Shipping Low-Quality or Mismatched Goods

The initial sample is high-quality, but for the bulk order:

• Cheaper raw materials are used.
• Product specifications are altered.
• The goods do not match the approved sample.

4. Sale of Counterfeit Goods

Especially regarding branded products:

• Items are produced with fake branding.
• Goods may be seized at the destination customs.

5. Payment Without Delivery

The company insists the buyer:

• Prepay 100% of the total amount.
• Once payment is made, communication is cut off or they provide various excuses.

6. Hidden Costs

After production, they suddenly demand additional payments for:

• Packaging fees
• Certification fees
• Storage fees
• Domestic transport costs

…which were not included in the original contract.

7. Forged Shipping Documents

The fraudster may send:

• A fake Bill of Lading (B/L)
• Forged invoices

…to falsely prove that the goods have been shipped.

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Methods to Prevent Fraud

• Verify the company’s Business License.
• Search the company name online and on trade portals.
• Request a live video tour of the factory.
• Utilize third-party inspection services.
• Use Letters of Credit (L/C) or Trade Assurance programs.
• Ensure payments are only made to official corporate bank accounts, never personal ones.
• Start with a small-volume trial order.