40 Scammers-Free Tips : How to protect yourself against fraud on Alibaba.com


Learn from real fraud case analysis to avoid being scammed.Typical fraud cases that buyers or sellers often encounter when doing online business.
Know  how to detect signs of online scams, recognize and avoid Fake Check Scam,remain vigilant after you tasting some benefit, be cautious of Gold Supplier Identity Theft, beware of Western Union "Wire-a-friend" Scam,avoid Fake Alibaba Partner Scam,spot Seller's False Information and protect your privacy and security.
  1. Check Alibaba's partnership list
    If you think you are in the process of dealing with a company that is misusing Alibaba's logo, you can always check Alibaba's partnership list.
  2. Be aware of Western Union "Wire-a-friend" Scam
    NEVER send money to someone you are not 100% sure of by “Western Union" and NEVER let anyone else know the details or that the transfer has even taken place. 
  3. Spot Seller's False Information 
    Verify company contact information If the seller is pretending to be a US company, verify that it is legitimate company and the contact information is correct by calling the company telephone number or by searching the company name on related state government websites.
  4. Be cautious of some excuses
    Excuses such as the products are detained by Customs Office for some reasons, and asking buyers for additional payment to release the products. .
  5. Be Cautious of sending payment to another country instead of the registered
    If the seller requests you to send payment to another country instead of his registered country showed on the website, this is a sign of potential fraudBe Cautious of Gold Supplier Identity Theft
  6. Find the company's website on Alibaba.com
    Make your own investigation before dealing with your potential partner. Use the company name they provided to search Alibaba.com to find the company's website.
  7. Check category of the listed products
    Compare the products listed on the company website. If they are in entirely different categories, for example; the company usually sells shoes but the offer you received is an Ipod, it might be a signal of fraud.
  8. Verify the contact person
    Contact the company on Alibaba.com directly and confirm with them whether the person contacting you is really from their company or not. You can send email to the Alibaba.com service team and they will help you verify the contact person
    Protect your privacy and security
  9. Understand how the site work
    Before you sign up to sell something, read the site's Help files.
  10. Check out the buyer's reputation
    The built-in system allows sellers to rate other customers. It's wise to be wary of a buyer who has negative ratings.
  11. Consider using a third-party payment service
    Third-party payment services allow you to transfer money into an online account and make payments from that account without exposing your credit card or bank account information. Many buyers and sellers prefer using these services over personal checks.
    Consider using an online Escrow service for high-priced items.
    An Escrow service (e.g. Alipay) acts as a go-between that holds the buyer's money until the buyer receives and approves of the seller's item. Both sides should agree upon the terms of Escrow.
  12. Research any third-party payment or online Escrow service a buyer wants to use before you agree
    Fraudulent buyers will insist that the seller use a third-party payment service or an Escrow service that turns out to be fraudulent. The seller ships the item to the Escrow service, but never receives payment or the return of goods.
  13. Call the credit card company
    If you choose to accept credit cards, contact the company that issues the card to verify that the name on the card matches both the shipping information and the contact information you've received.
  14. Use tracking services when shipping
    It is usually the buyer's responsibility to pay for shipping an item, but the seller typically chooses the shipping method. To help ensure that your item arrives in a timely manner, and to help prevent fraudulent buyers from claiming that they never received an item (when, in fact, they did), use a shipping service that includes tracking, or consider paying or charging extra for tracking services.
  15. Never respond to unsolicited requests to update your account information
    These could be scams that can lead to identity theft. Most legitimate companies never send unsolicited e-mail or instant message requests for a password or other personal information. If you receive a request that you think is legitimate, contact the company directly (not through the message you received) and ask for confirmation.
    Remain Vigilant After You Tasting Some Benefit
  16. Always follow normal foreign trade processes when doing business with your partner
    Fraudster will use the psychology of the supplier to conduct fraud activities and will place small orders first and transfer payment quickly to convince the supplier he is a good partner. Then he will place a large order and set a trap for supplier. Based on the good cooperation of previous business, the supplier will fall into the trap easily.
    Cashier's Check Fraud
  17. Ask your potential buyer more questions
    It is ALWAYS too good to be true. No buyers will make a rush decision without discussing the details of your product. Ask your potential buyer more questions.
  18. Don't be hurried along by your buyer
    This is often a tactic used by fraudsters to get you to make a mistake.
  19. Check the details of any payment received
    Do they correspond with the information given to you by your buyer?
    If you are paid by company Check or banker's draft, then try to contact the company directly to verify its legitimacy.
  20. Confirm details with your bank
    Your bank will be able to give you guidance and clarify the status of any payments received.
  21. Report Cashier's Check Fraud
    If you do lose money to Cashier's Check Fraud, then report the matter to your local police and contact the Alibaba service team at alibaba@service.alibaba.com, or service@service.alibaba.com if you are a Global Member.
    Be Cautious of Business Impostor
  22. Beware of scammers who use the name of a real company to conduct fraud on the Internet
    Scammers will pretend to be an agent or branch of a real registered company to convince you that they are serious. Don’t blindly rely on a Bank report.
  23. Check their background information using your own due diligence
    Go to local government or state websites to locate this company and then compare it with their contact information. If the company’s registered contact information is different from the information they have provided you, be extremely cautious. It is always necessary for you to contact the real company for further verification. For verification of UK companies, the following government website can help to locate registered companies’ information:
    http://www.companieshouse.gov.uk/index.shtml
  24. Never send payment upfront
    In this case, it is strange that the supplier was requested to send payment before getting orders from the agent. Scammers know that suppliers are desperate to establish good and long-term relationships with big buyers. This allows them to make unreasonable requests, such as upfront payment. Please be vigilant if you encounter similar requests.
    Detect signs of online scams
  25. Do Google search with the name of the company and the word scam
    Normally, there should be no page with the company listed with the word scam next to them but if you see at least one, maybe it is a scam. No need to have several pages, only one is necessary.
  26. Ask people around on forums
  27. Verify the address on www.whitepages.com
    Enter the address to find out if the address is really registered as their business address or at least at their names.
  28. Ask the to call you by phone
    Normally scammers won't do this but beware, some also tries to call you.
    Please be aware that some scammers uses call redirection or they can use fax to email.
    Using this, they get number that are listed in U.S.A., U.K. or any European country where in reality, they are located elsewhere. 
     
  29. Always inquire about the mail address
    This is a mistake scammers often made. Try to see whether the email address comes from a free mail server.
  30. Watch out for anyone who offers to break the rules for you
    When there is nothing in it for them. Unless they are the boss or you are a large client someone who can move production time forward for you or reduce the price from $10 to $5 is someone who is agreeing to give up money. No one gives up money. Anyone who approaches you outside the system is instantly suspect. If they were legit, they'd be selling legitimately. 
  31. Compare company information on Alexa and Whois pages
    Search the company web address on www.alexa.com and www.whois.net to Compare company information.
  32. Check company status on Better Business Bureau
    Go to the Better Business Bureau at www.bbb.org and search their database for the company. I can already tell you that my site is not listed for whatever reason. If they are not there, it does not mean that they are not legitimately in business. 
  33. Search for complaints or comments records on the Internet
    Check out these websites:
    Conduct proper due-diligence before entering into any transaction
  34. Verify the supplier's identity
    For Gold Suppliers, you can refer to the their Trustpass Profile on their Alibaba.com Company Website for their A&V Check or Onsite Check information (What is A&V Check and Onsite Check?). You should also use other offline/online methods to verify the supplier. 
  35. Verify the supplier's manufacturing/trading capability
    You can also refer to the supplier’s Audit Reports (if available) for an independent onsite report of their manufacturing/trading capability. Verify the supplier's financial credit worthiness. Ask the supplier for their bank's reference letters. 
  36. Confirm the supplier's authorized signatory
    Try to use AliExpress or other escrow support websites or to use L/C. 
  37. Order a sample first to check the quality and to ensure that the product is what you are looking for
    If the product you are ordering is too large to get samples, we suggest asking the supplier’s previous customers for reference. 
  38. Look for Gold Suppliers that are long-term members on Alibaba.com
    While Gold Supplier membership is not a guarantee of safety, they have passed an A&V process that increases the chances of a safe and positive trading experience. If a member has been a Gold Supplier for several years, then they are potentially an even better trading partner as they have a long history on our site. While we have many reliable, safe and high quality Free Members, you should always be extra careful in trading with them, as they have not been through the A&V process or verified in any way by Alibaba.com. 
  39. For AliExpress suppliers and some suppliers on Alibaba.com, Escrow payment is available
    This protects your payment until you have confirmed receipt of the goods. If available, always use this payment option for security. Always be cautious of using untraceable wire service transfers with suppliers you do not know. These are highly risky and susceptible to fraud.  
  40. Use TradeManager to contact companies listed on Alibaba.com
    Ask companies to verify that the person you are in contact with is actually their representative.
Image courtesy of David Castillo / FreeDigitalPhotos.net
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