Seven red flags that a supplier is a scam

The warning signs experienced buyers watch for before they ever wire a deposit.

Most sourcing fraud follows a familiar script. Learn the red flags and you'll spot trouble before any money leaves your account.

Seven red flags

1. A bank account in a different name than the company you're buying from.
2. Prices far below every other quote you've received.
3. Pressure to pay quickly or lose the deal.
4. Refusal to allow a factory inspection or video call.
5. A brand-new company profile with no verifiable history.
6. Contact only through personal email or messaging apps, never company channels.
7. Payment demanded 100% up front by wire, with no protection.

How to protect yourself

• Verify the business and factory independently before paying.
• Pay in milestones — never a full wire deposit up front.
• Order samples and inspect before the balance is paid.
• Confirm the bank account name matches the company exactly.

Verification-first platforms exist precisely to remove this risk — the checks happen before the supplier ever reaches you.