Supplier fraud is one of the most costly risks importers face. When working with a distant, unfamiliar company, trust can easily be abused. Here are concrete ways to protect yourself.
Most common types of fraud
- Fake company: Ordering from a firm that does not exist or is not active.
- Payment fraud: Goods never shipped after an upfront payment.
- Quality fraud: Low-quality goods sent, different from the sample.
- Account takeover: Impersonating a real supplier's email to redirect payment.
How to protect yourself
- Verify the firm's official registration, address, and years in operation
- Always confirm any bank-account change request through a second channel
- Do not pay the full amount upfront on a first order; use secured payment
- Arrange an independent pre-shipment quality inspection
Recognize the warning signs
An unusually low price, high-pressure urgency, and inconsistent contact details are the most common red flags.
In importing, trust is good — but verification is better.
Hawk Consulting's Import Agent service protects you from these traps with supplier verification and risk control. Share your product to source with confidence.