Shanghai Surprise. Seller’s email gets hacked and buyer sends money to the hacker.
Seller AND Buyer both get screwed!
The blacklist is receiving an alarming number of cases that unfold like this:
- Buyer and legitimate supplier have an established relationship
- Supplier email is hacked
- Hacker pretends to be supplier representative and directs payment on next order to a new bank account which is the hacker’s personal account
- Funds are received, account closed, hacker disappears
- Buyer senses something is wrong, contacts supplier via phone or other email and learns supplier was not aware of any order or recent communications with buyer.
Unfortunately this is a common scam happening in China. Here is how to avoid it:
Make sure the name on the contract is the same as bank account!
Don’t send large payments to private accounts.
Visit the supplier for audits and inspections during your order. If the buyer schedules an onsite visit to check an order, it will become clear pretty quick if the supplier is not aware an order has been placed!
Any other tips? Anybody get close to falling in this scam and realized it was a trap in time? Please leave your reply below.