Recently one of our South African clients lost more than 5000 USD by a 'fake’Chinese importer. They were offered a huge order valuing more than 9,000,000.00 USD and were invited to China to attend a so-called contract signing ceremony. The professional fraudsters have too many ‘pretexts’
to get money from the victims worldwide: notary fee, kickbacks, gifts, bribes etc. It is even hard for the local police to crack down such cases as they use all fake names and official documents in China. In order to warn more reliable businessmen worldwide, STIN Company Verification
team summarized the features of China international buyer fraud case for your reference.
Features of Chinese import fraudsters:
1.Fully registered a NEW offshore trade company in Hongkong, with a created address and a created company name in Mainland China. Please note that they will use 'fake’identity cards to register the offshore trade company in China as well.
2.Leased a luxurious office temporarily, with at least three ‘actors’, one is act as a ‘president or CEO’, one act as a financial director and the other act
as an ‘importer manager’ or assistant.
3.The offer (contract value) is very attractive and huge, valuing more than 1 million USD at least or even tens of millions USD, with favourable payment terms,
say, 30% in advance by T/T within 24 hours upon the signature of the contract in person.
4.Claimed to be a big group company, with a wide range of business: trade, distribution, investment, manufacturing and so on. They claim to import all kinds of
items from other countries.
5.Constructed a website, with many items on, disguised to be a group company online. They used an official company email box as well.
6.Used automatic Group Mailing system and they can sent tens of thousands of emails every day. If the receiver responds, then a guy will follow up by email and the trap begins. They never attend the trade fairs or shows in China.
7.Insist on signing the contract in person in China and they will invite you to attend their so-called Contract Signing Ceremony.
8.Insist on NOTARIZING the contract and they will appoint (designate) a local Notary Office (but normally this notary office is a NON-EXIST one in China.).
9.Used ‘fake’ Chinese invoice and Chinese official licenses.
10.Used ‘fake’ signature, they do not sign their names in full.
According to the case-reports from our clients so far, 99% of above notorious scammers are from Henan (Zhengzhou city) and Guangxi (Guilin city) etc, China at present.
How they TRAP you STEP by STEP ?
First: Use automatic group mailing software to send you attractive offers and inquiries, with created official websites and email boxes. Formal documents, formal address, websites and bank accounts etc, everything seems to be normal.
Second: Invite you to sign a formal Purchase Contract in person in China.
Third: Insist on notarizing the contract and they will use a non-exist notary office to notarize the document, then all the notary fee will be in their pocket.
Fourth: Asking you for ‘kickbacks’ or ‘bribes’ in lot of ‘pretexts’ in China.
Fifth: After they get all those money, they will disappear and replica the scam again.
What are the Countermeasures against these Professional Business Fraudsters?
First: Ask the importer for their Business License and Import License before your departure to China, then checking out their registered information with local officials first.
Third: Appoint a local representative and visit
them first before your departure to China, they are NOT able to cheat local experts. .
Fourth: Never pay anything before receiving the deposit from the importer.
No matter you’re buying or selling, Due Diligence work is always important in China. Think it over before you pay out even one penny !
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