Here are some simple and very effective ways to protect yourself (compliments of the China Sourcing Information Center):
ONE: Be very sure the name of the supplier is the same for the following:
- On your contract
- The bank account where you send them the money
- The business license of the location of production.
TWO: More important, do an inspection (yourself or a 3rd party) before final payment is made, even with regular suppliers. It only costs a few 100 bucks and it gets very hard for a hacker to fake an inspection at the factory.
Anybody want to explain how to tell if a bank account name is a personal account or a corporate account, even when it’s Romanized Chinese (pinyin)? Please feel free to leave a reply in the comment box below.
Hint: Look for “youxian gongsi” and/or a city name.
I’ve never used an international money transfer service before. How do I know if I’m getting scammed?
Useful information, thanks for sharing.
https://www.abcmach.com
Now if a person is from overseas, how can one do due diligence? I Suggest we form a corporate entity as an intermediary for buyers and suppliers, who will hold the funds, only release to either party upon complete payment. am willing to be part of that entity. This is absurd, china, too bad because we shall deal with you using any possible legal means, I promise.
being overseas is no excuse for failing to do due diligence. There are many independent firms that can do proper due diligence for just a few 100 USD. Plus there are auditing firms who can check out the supplier’s production capabilities as well. I’d be happy to introduce the companies that have helped other SBL users in those areas.