Most Chinese suppliers are honest businesses. The ones that are not tend to use the same few methods again and again, because they work. If you know the patterns, you can spot most of them before you pay. This guide describes the common ones, the warning signs, and the check that stops each one.
1. The changed bank account
You receive an email, apparently from your supplier, saying the company has a new bank account, often in another country or another company's name, because of an "audit" or "tax issue". The email may come from a hacked mailbox or a lookalike address with one letter changed. You pay, and the money is gone.
Warning signs: a change of account just before a payment, urgency, an account name that is not the supplier's registered name, a slightly different email address.
The check: never accept new bank details by email or chat alone. Call the supplier on a phone number you already had, and check that the account name matches the company on your contract.
2. The factory that is not there
A professional website and platform profile, photos of a large factory, a confident salesperson, and a low price. The company is a small office, or does not exist at the address, and the factory photos belong to someone else.
Warning signs: no live video, or a video that shows only an office or a showroom; registration with sales-only scope and very few insured staff; a company set up recently.
The check: official registration and insured headcount, then a live video walk-through that you direct. See factory or trading company: how to tell.
3. The perfect sample, the different order
The sample is excellent. The bulk order is made with cheaper materials, thinner parts or a different component, and you find out after you have paid in full.
Warning signs: vague specifications, reluctance to put materials into the contract, a price that is low for the specification.
The check: write materials and key specifications into the contract, keep a sealed approved sample, and inspect the bulk goods before paying the balance. See pre-shipment inspection.
4. The deposit and the delays
The supplier takes your deposit, then production is "delayed" again and again. Sometimes the company is in financial trouble and is using your deposit to pay old debts. Sometimes it never intended to produce.
Warning signs: court records showing unpaid judgments or a dishonest debtor listing, unpaid wage disputes, a demand for a large deposit or full prepayment.
The check: court and enforcement records before you pay, a deposit sized to the risk, and production photos or a mid-production check before further payments.
5. The borrowed certificate
The supplier sends CE, UL, ISO or test reports that belong to another company, another product, or are edited copies.
Warning signs: certificates in another company's name, a model number that does not match, a report that looks like a scan of a scan.
The check: verify the certificate or report number with the body or laboratory that issued it, and check that the holder and the manufacturer named on it are your supplier.
6. The brand copy
The supplier offers well-known branded products at a fraction of the price, described as "original", "factory surplus" or "OEM quality". They are counterfeit, and they can be seized by customs, with you liable.
The check: do not buy branded goods without written authorization from the brand owner.
7. The fake agent or middleman
Someone presents themselves as the factory's export manager or as an independent agent, collects the payment into a personal or third-party account, and disappears, or keeps a large undisclosed margin.
The check: confirm who the person works for, pay only the company named in the contract, and confirm the account with the company itself.
8. The pressure to decide now
"Price valid only today", "raw material price rising tomorrow", "last container space this month". Pressure is used to stop you from checking.
The check: a genuine supplier will wait a few days for a verification. A supplier that will not is giving you useful information.
A simple rule set
Check the official registration and court records before any payment.
See the factory live, with you directing the camera.
Pay only the company on the contract, to an account in that company's name.
Put specifications in writing and inspect before the balance.
Confirm any change of bank details by phone.
The full checklist is in how to verify a Chinese supplier: 12 checks before you pay, and payment options are covered in safe payment terms with Chinese suppliers.
Already paid and worried?
If you have paid a deposit and something feels wrong, act quickly. Stop further payments, keep all messages and documents, and get the supplier's registration and court records checked. If the company is real, a visit or a firm conversation in Chinese often moves things. If it is not, the records help your bank and the authorities. Send me what you have and I will tell you what I can check.
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LocalAuditChina is an independent verification service, not a certification body or a law firm. Reports are findings to support your purchasing decision.
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