To avoid fake suppliers and procurement fraud in China, verify the business license and that the bank account matches the registered company name, never pay 100% up front, confirm certifications with the issuing body, request samples and a factory check, and treat prices far below market or pressure to pay quickly as warning signs.
Common China Sourcing Scams
- The fake factory — a trader or broker poses as a manufacturer, then subcontracts to an unverified site.
- Bank account switch — a request to pay a 'new' account that doesn't match the company name.
- Quality bait-and-switch — a good sample, then a downgraded production run.
- The disappearing deposit — deposit taken, nothing delivered, supplier goes silent.
- Fake certificates — altered or borrowed CE/ISO/FDA documents.
Red Flags That Should Stop You
- Prices far below the market for the spec.
- Bank account name different from the registered company name.
- Refusal to share business license, factory address, or live video.
- Pressure to pay quickly or pay 100% up front.
- Free email domains and no verifiable business footprint.
- Reluctance to allow inspection.
Verification Steps That Prevent Fraud
Most fraud is prevented by basic verification: confirm the business license and scope, match the bank account to the company name, verify certificates with the issuer, request samples, and commission a factory check for meaningful orders. Our factory verification guide covers this in detail.
Safe Payment Practices
Never pay 100% up front. Pay only to a verified company bank account, use a 30% deposit / 70%-on-documents structure, tie the balance to inspection, and use escrow or L/C for large or first-time orders. See payment terms.
Key Takeaways
- Match the bank account to the registered company name.
- Never pay 100% up front; tie balance to inspection.
- Verify certificates with the issuer, not the PDF.
- Below-market prices and payment pressure are red flags.