How to Protect Yourself from Supplier Fraud in India

Supplier fraud in India — while not widespread — does happen. Knowing the common scams and how to protect yourself is essential for any importer.

Common Scams

• **Fake factories**: Supplier doesn't own or operate a factory — they're intermediaries or fraudsters

• **Advance payment fraud**: Takes your deposit and disappears

• **Quality bait-and-switch**: Shows excellent samples but ships inferior products

• **Quantity short-packing**: Ships fewer items than invoiced

• **Over-invoicing**: Inflates product prices significantly above market rates

• **Document fraud**: Provides fake certificates of origin, quality certificates, or compliance documents

Prevention Steps

1. Always verify supplier identity and factory existence before paying

2. Use staged payments — never pay 100% upfront

3. Request and verify all documents independently

4. Order samples before committing to large orders

5. Use a trusted sourcing agent or inspection company

6. Get written agreements with clear terms

If You've Been Scammed

Contact your bank immediately to try to recall the transfer. File a complaint with the local police. Contact the Indian embassy or consulate in your country. Consult a lawyer specialising in international trade disputes.