How to avoid common sourcing scams

Changed bank details

A common fraud is an email, apparently from your supplier, saying the bank account has changed. Never pay to new bank details without confirming by phone or video with a contact you already know, using contact details you had before the email arrived.

Payment to personal accounts

Pay only to a company account in the same name as the company on your contract. A request to pay a personal account or a different company needs a clear explanation in writing, and is usually a reason to stop.

A price that is too good

A price far below the others often means a different material, a smaller size, lower quality or a seller who does not intend to deliver. Ask what is different, and compare quotes on the same specification.

Fake factories

Photos of a factory can be copied from elsewhere. Check the business licence in the official registry, ask for a live video call that walks through production, and check that the address and the company name match.

The sample is not the order

Some suppliers send an excellent sample and then lower the quality in production. Keep the approved sample, put the specification in the contract, and inspect the goods before paying the balance.

Pressure to pay quickly

Urgency ("the price is only valid today", "the factory needs full payment now") is a warning sign. A serious supplier gives you time to check the company, approve a sample and sign a contract.

A short checklist

• Business licence checked in the official registry.
• Company name the same on the licence, contract, invoice and bank account.
• Sample approved and kept.
• Written contract or proforma invoice with the specification.
• Inspection before the balance is paid.
• Any change of bank details confirmed by phone with a known contact.