Buyers Beware –Double Diligence

buyers beware of double diligence

Tip from an English Speaking Lawyer in China:  Buyer Beware! Double the Due Diligence when doing business in China!

Fraud is always a concern when doing international business; but only sometimes does it actually reveal itself.  We say, double your diligence before you pay.

A couple days ago, a buyer voiced a  complaint to me.  The buyer told me that their supplier received payment for goods.  However, the supplier denied receiving the deposit and refused to deliver the goods as per the agreement. The buyer said, “I received the supplier’s email from the same address with the supplier making a  claim that their bank account was undergoing audit and asked us to make payment to an overseas bank account.  Later I found out, the supplier never changed their bank account!”

Watch out!  A typical hacking scam, within sourcing, goes like this:

  • First, hackers will break into trading company’s email inbox and follow communication between clients.  
  • A supplier’s email inbox is easy access to hackers.  
  • Hackers will then find  an opportunity to send an email to the  buyer.  
  • Most hackers will tell buyers, ‘they are using a new bank account and all the payment made should be directed to that account.’  
  • If the buyer does as told without receiving confirmation from the supplier, by phone, regarding any changes, large amounts of money will probably be lost.

Remember: any changes that seem out of the ordinary to you, get phone confirmation from the supplier before adhering to new changes.


Worried about scams and bad suppliers?  Here are some tips for Due Diligence

Why do the scam artists target small scale foreign buyers?

Small buyer, high risk & E-buyer beware! Don’t fall into a scam trap!

Be wary of these two types of scams when sourcing in China

China Sourcing: 10 Common Mistakes




ABL Blog: Sr. Editor and Primary Content Creator:  Michael J. Bellamy

About the Author: Michael J. Bellamy

Originally from Upstate New York, Mike moved to Asia in 1993 and is a China business advisor to both Fortune 500 companies and small businesses.  Recognized as an expert on doing business in China, he has been interviewed by WSJ, CNBC, FT & Bloomberg.

A featured presenter on China issues at seminars, trade shows and corporate events across the globe.

Learn more about Mike and AsiaBridge Law at

Mike is the author of “The Essential Reference Guide to China Sourcing
(available on Amazon).

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