Fraud and Security Issues
With over 10 years' of successful business operations, CLSC has built up a reputation for trust and professionalism. But we understand that finding a reliable and trustworthy partner isn't always easy. Below we've included a list of common fraud practices and some tips on how to avoid them.
Examples of Fraud
Undertaking business with unknown companies is a big trade risk. The company you are dealing with could be a fake or fraudulent company that could disappear the moment they receive any money from you. In order to avoid being cheated by these companies, you can order a background check from CLSC, which includes a search for legal registration and credit record.
There are many variations of the fake check scam, but the common thread is a stranger proposing to send the victim a check and have the victim wire money in return. It may start with someone offering to buy something you promoted for sale, pay you to work at home, or give you an advance on a sweepstakes you won. Whatever the bottom line is, if someone you don't know wants to pay you by check but wants you to wire money back, it's likely to be a scam.
Beware of sending free samples (Buyer)
This practice concerns a supplier requesting a sample from the buyer to produce a product according to the client's requirements. Sometimes the supplier may use these samples without delivering the actual product to the buyer. In such cases, when samples are required for production, the supplier should pay for the samples and the shipment cost. Once the product has been delivered and the sample returned to the buyer, the money for the sample and shipment may be returned to the supplier.
Beaware sending free samples (Supplier)
The buyers request a nominal payment for samples. When an unknown buyer requests samples while hinting at a large order, it is always wise to request at least a nominal pre-payment. Otherwise, the supplier requests samples to check the quality of the product. Order a sample before committing to a significant purchase order, to make sure that the product meets your requirements. Always ask buyers to pay for samples - including shipping costs.
Sometimes a buyer may receive poor quality products after payment has been made, but the supplier refuses to compensate the importer or does not even respond to complaints. Sometimes a supplier may send high quality samples to the buyer but the quality of the real end product is very poor. In order to avoid poor quality, you can use CLSC's Pre-Shipment Inspection Services and demand the inspection as a condition to payment.
Long Time Firm Fraud (Supplier)
This kind of fraud aims to obtain large amounts of merchandise without payment. The swindler orders merchandise from a few suppliers and pays promptly. These suppliers are then used as credit references for larger and larger orders. The bogus company soon becomes a slow-payer and then a non-payer. At some point in the future, creditors are stuck for "the last payment".
This type of fraud is often well planned, highly organized and involves substantial financial backing. The fraudsters can provide references from concerns controlled by themselves or simply prepare false references using modern desktop publishing methods. They may operate from rented premises or accommodation addresses. Many of these frauds investigated by the police, illustrated a basic failure by the suppliers to carry out checks on the creditor for creditworthiness and details of an established trading history.
Be Wary of Over Generous Offers
Be wary of potential partners who offer an especially high or low price. It is easy to be tempted by such offers, but they are often attempts at fraud. In business, the expressions "you get what you pay for" or ''if it sounds too good to be true, it is'' are often painfully true.
With our business experience and expertise we thoroughly understand the Chinese supply side market. By using CLSC's services you are able to protect yourself against fraud and can concentrate on providing quality service with quality products to your customers.
If you feel you may be subject to the victim of fraud or are having issues relating to product quality with your suppliers, please contact us to see how we can help.
