The 10 Checks We Wish Every Importer Ran Before Wiring Money to China
Most importers who get scammed didn't miss some exotic warning sign. They skipped the same three or four basic checks — and paid for it. This is the framework we use on every FactoryChecker report, distilled into steps you can run yourself before wiring a deposit.
The 10 scams that account for almost everything
Stolen identity suppliers who copy a real factory's licence and website, fake Alibaba Gold Suppliers with year-old accounts, bait-and-switch on samples versus production, disappearing acts after a 30% deposit, wrong-product substitutions, quality downgrades mid-order, midway price hikes, personal bank account requests, Western Union or crypto demands, and email-hijack fraud where an attacker slips into the thread and swaps banking details. Nine out of ten losses fall into one of these ten buckets.
Step 1 — Verify the legal entity, not the brand
The name on the invoice must match a company registered with China's Administration for Market Regulation. The 18-character Unified Social Credit Code is the key. If the supplier can't send a clear business licence with that code, stop.
Step 2 — Cross-check on GSXT
Enter the code on the government registry (gsxt.gov.cn). Registration date, capital, legal representative, business scope — all must match the licence. A five-month-old company with RMB 100,000 registered capital is not a real ten-year manufacturer.
Step 3 — Pull court and enforcement records
Search the Chinese name on China Judgements Online and the enforcement list. Multiple contract disputes or an active 被执行人 status is a hard stop.
Step 4 — Insist on a corporate bank account
The account name must match the licence, character for character. A personal account, a Hong Kong shell, or a 'partner company' is almost always fraud. See the personal bank account article for the three fraud patterns.
Step 5 — Video call the production floor
Live, unscripted, with the phone pointed at your product on the line. Not photos, not a pre-recorded tour. Middlemen almost never pass this.
Step 6 — Split payments and use escrow when you can
30/70 T/T is the industry standard. Alibaba Trade Assurance or a letter of credit shifts risk. Never 100% upfront on a first order.
Step 7 — Sign a real contract, in both languages
A one-page PI is not a contract. NNN, specs, tolerances, penalties, arbitration seat (CIETAC in Beijing or Shanghai) — bilingual, chopped, and signed.
Step 8 — Book a pre-shipment inspection
$250–$400 to have an inspector on the floor before the container leaves. Catches most quality and quantity fraud before you release the balance.
Step 9 — Watch the email chain like a hawk
Email hijack is now one of the most common scams. Any mid-project banking change gets verified by a fresh video call, not a reply to the same thread.
Step 10 — Order a third-party verification report
Everything above takes days and reads Chinese. FactoryChecker runs it for $129 flat and returns a plain-English report before you send a dollar. If the supplier is real, you buy peace of mind. If not, you keep your deposit.