Fraud Case Study 19 - For Newcomers on Alibaba

I recently joined Alibaba.com. I sent a message around saying that I was looking for clothes and I got a few replies back, and got talking to one supplier on MSN. I looked at his website, and enquired about the cost of his mobile phones - the apple iPhone was $250, so I immediately saw dollar signs in my mind! I want to buy ten phones, but I am hesitating about dealing with this supplier.

How to do your due diligence in this case:

1. If the supplier usually sells products in a completely different line, take care as you may be dealing with a fraudulent company. e.g. a clothing supplier who sells brand name mobile phones as well.

2. Always remember, if it is too good to be true, it probably is. If the price of the products are 50% lower than the normal market price, there is a chance that the products sent will be counterfeits or broken.

3: If a potential business partner claims to be an Alibaba.com Gold Supplier, use the company name they provide and find their company website on Alibaba.com. We recommend you to contact the supplier directly on Alibaba.comusing TradeManagerto
confirm their company details and genuine email address. Some fraudsters will misuse the name of Gold Suppliers to commit fraud.

4: If the supplier insists on Western Union payment only, then choose another supplier. Serious suppliers will always offer a selection of payment methods.Western Union is not the recommended payment method for transferring money to strangers.

5. Use the company name, email address or telephone number to do a Google search. If this company's information or website is listed under different company names, it is most likely they are not serious.

6. Search the Alibaba.com Forum to find out if there is any negative feedback against this company.