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.
Do you run or plan to start importing from China but do not know whether your Chinese business partner is a legally registered company? This is a common problem when doing business with Chinese companies, especially when you do it through the Internet and use B2B portals like Alibaba.com. The question seems peculiar, but still not enough people ask themselves about it. Surely it would possibly avoid a lot of scams if the importer had access to this apparently trivial information about a supplier from China.
So how can you check if a Chinese company exists?