Targets of the majority of Chinese frauds are companies that are just beginning to cooperate with a Chinese partner. For example, Big Order Scam. Therefore, importers who have been trading with one company for years without any problems are convinced that they are safe and none of the Chinese scams concern them. However, this kind of thinking can be very deceptive. Unfortunately, even an experienced importer, who maintains a good business relationship with his trade partner, can fall victim of the Chinese scam. As a warning, we present the China Bank Switch Scam and how to protect yourself from it.
A Big Order Scam is a common type of business fraud. It has been used by scammers in China ever since China opened its borders to foreign trade. Surprisingly, despite many warnings and raised awareness of these scammers, a lot of naive entrepreneurs, blinded by a vision of big profit, still fall for this old trick. If you don’t want to be one of them, read how Big Order Scam works and you won’t get fooled.
In recent months we have noted growing problems with the reliability of companies located in Tianjin, Shijiazhuang and Xi’an. There is no shade of doubt that experienced importers know how to protect themselves and minimize risks associated with cooperation with Chinese companies by ensuring a verification of a given company, signing a commercial contract, visiting factories and controlling the quality of goods (the so-called on-site checks). Of course, not every Chinese company is an organized crime group, yet many inexperienced importers forget to do background checks of their suppliers, which is even riskier if a given company is located in one of the above-mentioned cities.
New Chinese Scam – how the Chinese scammers operate? (China Big Order Scam)
It has been a long time since China has opened its vast market to foreign investors. It created many opportunities, but also some dangers: a lot of people, blinded by the perspective of big profits, forgot about basic safety measures and were duped by Chinese scammers. Along the technical progress and overall rise of investors’ level of knowledge, the scams are getting more and more elaborate.