Import scams from China: Proven tips to avoid getting scammed

Import scams from China aren’t a single trick. They’re a pattern of predictable moves across sourcing, contracts, payments, logistics, and customs. The fastest way to cut risk is simple: verify the supplier, control the money, lock in specs and inspections, choose buyer‑friendly Incoterms, and monitor freight and compliance end to end. Do those five things and most scams never get a foothold.

What Counts as an Import Scam

Types of scams affecting international importers

Scams in cross‑border trade fall into several buckets. At the supplier level, nonexistent factories, forged licenses, bait‑and‑switch, and quality fade dominate early transactions. During execution, classic plays include payment diversion via hacked email threads, fake or altered documents, counterfeit goods, and phantom shipping with falsified tracking. On the logistics side, bad actors inflate LCL destination fees or hide charges behind vague line items. Finally, customs-related schemes involve undervaluation, misclassification, transshipment, or attempting to slip forced‑labor goods through the border. These are not rare edge cases; they track with how money and custody move through an import.

Counterfeiting and unsafe goods remain central. U.S. Customs and Border Protection reported more than 20,000 IPR‑related seizures in FY2024 with an MSRP value around $5.5 billion, underscoring the scale of illicit product risk that rides alongside legitimate trade [1]. Freight fraud and cargo theft create a parallel drain, with annual losses reaching hundreds of millions of dollars across North America’s logistics sector [2].

How scammers target global buyers

Scammers work where buyers lack visibility. New importers get pulled in by listings that look professional but rely on stolen photos, fabricated addresses, and unverifiable licenses. Communication moves fast on chat apps, price quotes look irresistible, and payment urgency ramps up before any verifiable proof of production exists. In parallel, business email compromise tools scrape inboxes to hijack invoice threads and swap bank details at the last minute. During transit, vague freight terms like CIF for LCL shipments give destination agents room to add inflated fees that must be paid to release cargo. At delivery, the final blow can be counterfeit merchandise or products failing safety checks that never should have shipped.

The playbook shifts with policy. As tariffs rose and de minimis routes narrowed in 2025, scammers pivoted to “tariff payment” phishing and more aggressive misdeclaration schemes, sometimes pressuring importers to pay fake government fees or to accept altered documentation to keep cargo moving [3][4].

Where scams occur in the sourcing to delivery chain

• Sourcing and vetting. Fake entities, ghost factories, forged certifications, and recycled audit reports.
• Sampling and production. Bait‑and‑switch, quality fade after a good pilot run, substitution of cheaper materials.
• Payments. Unsecured wire demands, personal accounts, and last‑minute bank detail changes via hacked emails.
• Shipping. Fake bills of lading, no‑sail cargo, or inflated destination charges under seller‑controlled terms.
• Customs and compliance. Undervaluation, misclassification, sanctions/forced‑labor exposure, and seizure‑level noncompliance [1][5].

The Most Common China Import Scams Worldwide

Nonexistent suppliers and fake factories

Fraudulent sellers often stitch together a website, a marketplace storefront, and a handful of polished PDFs to mimic a real manufacturer. Red flags: no verifiable Unified Social Credit Code on the business license, mismatched company names across documents, and “factory” photos that can be reverse‑searched to another site. References may be fabricated and “audits” copied from other factories. When payments land, the entity vanishes or ships something unrelated to close the loop.

Verification through China’s National Enterprise Credit Information Publicity System and independent audit providers remains the single best filter against ghost factories. Legitimate outfits have consistent legal names, addresses, and export histories that match what is presented in quotes and pro forma invoices [6].

Bait and switch and quality fade

Bait‑and‑switch starts with an excellent sample and ends with a bulk run that quietly swaps materials, components, or tolerances. Quality fade emerges over repeat orders as margins get squeezed; a supplier trims quality bit by bit assuming the buyer won’t detect the drift until it’s painful to switch. Both thrive when the buyer skips a signed spec, a golden sample, and third‑party inspections with statistical sampling before shipment.

Pre‑shipment inspections and container loading checks by reputable firms disrupt these tactics, as does a contract that ties payment milestones to inspection pass results and defines objective AQL standards for workmanship and critical defects [6].

Fake documents, counterfeit goods, and shipping fraud

Document fraud ranges from altered certificates to fabricated bills of lading. Counterfeit goods are often mixed into genuine shipments or disguised through misleading product codes. Shipping fraud includes issuing a bill of lading without receiving cargo, falsified tracking, or steering buyers into LCL fee traps under seller‑controlled forwarders. In FY2024, CBP executed thousands of import safety seizures and over 20,000 IPR seizures, reflecting both health risk and brand risk inbound to the U.S. market [1].

Scammers also exploit communication channels. Payment diversion scams frequently start with compromised email threads that change bank beneficiaries or switch to personal accounts. Durable controls include call‑back verification to a known number and bank‑name matching to the Chinese legal entity, not a similar‑sounding Hong Kong shell [2][7].

Top Red Flags For Scams When Importing From China

Unrealistic prices and pressure to pay fast

Prices that sit far below the market usually mean one of three things. Either material specs are different than stated, the seller intends to swap quality post‑sample, or the supplier doesn’t plan to ship at all. The pressure pattern is predictable. “Other buyers are waiting.” “Discount only if you pay 100% now.” This is the oldest trick in cross‑border trade for a reason. Legitimate manufacturers are busy, not desperate.

• Benchmark quotes from five to six suppliers for comparable specs.
• Refuse 100% prepayment on first orders. Use staged terms tied to inspection.
• Escrow or letter of credit for larger orders dampens urgency scams [6].

Inconsistent company names, addresses, and bank details

Mismatched details across business licenses, pro formas, bank accounts, website footers, and stamps are not clerical quirks. They’re tells. Watch for mainland entity names paired with offshore bank accounts that don’t match the license, switching from corporate accounts to personal ones, or “group” names that are never registered in China’s corporate registry. These issues surface in almost every major supplier fraud case.

Vague answers, missing documents, and poor communication

Legitimate factories know their own production lines. When simple questions about capacity, tooling, certifications, or prior export markets trigger vague answers, delays, or defensive replies, consider that an early warning. Refusal to provide current audit reports from reputable firms or to do a brief live video walk‑through suggests there may be no factory to show [6].

Supplier Verification And Due Diligence Checklist

Verify business license and registration

1. Request the Chinese business license with the 18‑digit Unified Social Credit Code. Cross‑check the legal name, address, and scope on China’s enterprise registry. Outcome. You confirm the entity exists and operates in the claimed scope [6].
2. Match bank account name and beneficiary to the licensed entity in Chinese and English. Outcome. Payments go to the real company, not a personal or offshore account [6].
3. Screen against U.S., EU, and international sanctions and entity lists. Outcome. You avoid suppliers that could trigger blocked entries or enforcement actions [5].

Request third-party audits and references

1. Obtain recent factory audits from SGS, TÜV, Bureau Veritas, QIMA, or V‑Trust. Outcome. You verify production lines, headcount, address, and export capability with photos and timestamps [6].
2. Ask for two to three buyer references, then validate them independently. Outcome. You check delivery performance and after‑sales behavior.

Conduct live video tours or on-site visits

Short of an in‑person visit, a 10‑minute live video walk‑through of the office front, production lines, warehouse, and signboards filters out most ghost factories. Ask the team to show the printed business license on the wall and a live view of the address on a maps app in the same session. On major orders, commission a pre‑production visit through an inspection firm.

Safe Payment Terms And Escrow Best Practices

Use escrow, letters of credit, or secure payment platforms

Escrow and LCs change incentives. Trade‑assurance style escrow holds funds until delivery or inspection milestones are met, while letters of credit release payment only when banks receive compliant documents. Both lower the payoff for scammers who rely on unsecured wires. For small orders, reputable platforms with buyer protection can work. For larger orders, an LC or third‑party escrow is the safer spine [6].

Structure deposits and balance after inspection

Standard terms for a first order often land at 30% deposit and 70% after pre‑shipment inspection passes and before loading. Tie the balance to objective pass criteria and receipt of clean documents. The key is to link money movement to verified performance, not to time alone.

Avoid risky methods and payment diversion scams

• Do not pay personal accounts, crypto wallets, or remittance services. Keep to corporate accounts in the supplier’s legal name.
• Before sending any payment, confirm bank details via a voice call to a known phone number. Never rely on a single email for bank changes [7].
• Use dual‑control approvals inside your company for any new beneficiary setup.

Contracts, Incoterms, And Trade Assurance That Protect Importers

Choose appropriate Incoterms for control over freight and fees

For LCL especially, FOB terms are buyer‑friendly. Under FOB, you appoint the forwarder and control origin and destination charges, avoiding inflated destination fees that often appear under CIF/CFR when the seller’s agent controls the handoff. DDP can work for smaller parcels but demands tight diligence because the seller controls customs representation. Your Incoterm choice sets who controls cost levers at each handoff.

Define specifications, quality thresholds, and remedies

Write a bilingual purchase agreement that includes detailed specifications, drawings, materials, finish tolerances, labeling, packaging, regulatory marks, and testing requirements. Attach a golden sample reference. Define AQL levels, acceptance tests, and remedies such as rework, replacement, or price credits linked to defect categories. When disputes arise, clear specs beat screenshots of chat messages every time.

Set dispute resolution and governing law

Choose arbitration venues and rules known for international trade, and specify governing law in the contract. Specify that English and Chinese versions are equally authoritative, with a dispute‑resolution clause that does not depend on informal promises. Serious suppliers accept formal terms because predictable rules protect both sides.

Quality Control, Sampling, And Pre-Shipment Inspections

Approve samples and create a golden sample

Use samples to set an objective bar. Approve a production‑grade sample that matches all specs and seal it as the golden sample. Reference it in the contract so inspectors and factory teams share the same definition of “good.” Order more than one sample to check consistency across runs.

Book pre-shipment and container loading checks

Pre‑shipment inspections with statistically valid sampling catch workmanship and spec issues while the factory can still fix them. A container loading check verifies the correct SKUs, counts, packaging, and sealing at the dock. Tie final payment to inspection pass results documented by a recognized firm [6].

Order lab tests for safety-critical products

For products with safety or regulatory exposure, ship only after relevant lab tests pass. That may include material safety for children’s products, electrical safety for devices, or chemical thresholds for textiles under EU or U.S. rules. Testing protects both consumers and your brand when regulators tighten checks or random exams occur at the border [1][5].

Freight Forwarding And LCL Fee Traps To Avoid

Spot hidden destination and documentation charges

LCL is touch‑point heavy, which means more fee surfaces. Common add‑ons include Terminal Handling Charges, documentation fees, security fees, storage after free days, and “China Import Service Fees” under seller‑controlled terms. These aren’t always illegitimate, but undisclosed or unitemized charges are a red flag that someone expects you to fund their margin at the destination warehouse.

Get itemized quotes for LCL and local fees

• Ask for a door‑to‑door itemized quote that separates origin, ocean, and destination charges.
• Request the number of free days at the CFS and per‑CBM destination fee ranges so you can benchmark against norms.
• Document all inclusions in writing. If a forwarder refuses to itemize, choose another.

Work with licensed forwarders and avoid CIF traps

Under CIF/CFR on LCL, the seller or its agent controls destination release, creating room for inflated local invoices. Switching to FOB and appointing a licensed forwarder of your choice typically restores transparency. Reputable forwarders give fee breakdowns up front and communicate storage and demurrage timelines to avoid surprise bills.

Compliance With Customs, Import Regulations, And Forced Labor Rules

Screen suppliers under international sanctions and entity lists

Sanctions, export controls, and forced‑labor entity lists evolve. Screen counterparties at onboarding and again before shipment to avoid holds or Withhold Release Orders. Agencies continue to expand forced‑labor enforcement, and entries tied to banned entities face detention or seizure [5].

Classify goods and declare value accurately

Misclassification and undervaluation draw penalties and can trigger investigations. Accurate HTS codes, true transaction value, and complete bills of materials for complex goods reduce exam risk. CBP has intensified enforcement against undervaluation, misdeclaration, and transshipment to evade duties in 2024–2025 [5].

Monitor entries for holds, exams, and regulatory compliance

Use your broker portal or ACE access to track entries for potential holds or exams, and prepare supporting documentation in advance. Keep supplier declarations, test reports, and certificates ready to respond quickly. Numbers from CBP show consistent enforcement on unsafe and counterfeit products at the border along with IPR and safety seizures [1].

Regional compliance notes

Europe: CE marking, REACH, and customs requirements

Products falling under CE directives require technical files, conformity assessments, and proper labeling. REACH limits certain chemicals in consumer goods. Importers are legally responsible for compliance documentation and market surveillance response timelines.

Australia & New Zealand: Biosecurity and import permits

Biosafety is strict. Many products need permits and pre‑arrival notifications. Wood packaging must meet ISPM 15. Expect quarantine inspections for higher‑risk commodities.

Canada: CBSA rules and product standards

CBSA aligns with detailed tariff classification and value accuracy, with sector rules spanning electrical, consumer products, and bilingual labeling. Random exams and documentation checks are common.

South America & Africa: Local customs and import restrictions

Documentation, licensing, and standards vary widely by country, with frequent changes. Engage local brokers early and obtain certificates of conformity where programs exist. Build in time for physical exams.

How Supplier Ally Helps Importers Avoid Scams

Comprehensive sourcing agent services for global buyers

A strong sourcing partner acts as an extension of the buyer’s team, standardizing supplier searches, pre‑screening credentials, and aligning specs and samples before money moves. The best setups run a structured RFI/RFQ process, compare like‑for‑like quotes, and maintain a vetted bench of factories for common categories.

Rigorous supplier verification and due diligence process

Effective programs verify business licenses, match bank beneficiaries to the legal entity, commission third‑party audits, and screen for sanctions and forced‑labor exposure. Factory visits or live video tours confirm reality on the ground and catch ghost facilities early.

Transparent communication and secure payment facilitation

Centralized communication keeps specs, approvals, and change orders in one place. Payment flows run through escrow, LCs, or staged T/T to protect funds, with dual‑control checks on bank details to defeat invoice‑hijack attempts.

After-sales support and dispute resolution assistance

When issues arise, a capable agent coordinates rework, replacements, or negotiated credits based on inspection data and contract remedies. The result is faster resolution and less finger‑pointing across time zones.

Enhanced safety, transparency, and security throughout the import process

From golden samples to pre‑shipment inspections and lab tests for safety‑critical goods, a disciplined process hardens every weak link scammers try to exploit. Freight selection and Incoterm guidance close the loop on cost transparency.

Brushing And Unordered Packages: What Global Buyers Should Do

Recognize brushing and QR code phishing

Brushing scams send unordered low‑value items to create fake orders and post reviews in the recipient’s name. A newer twist drops a QR code in the package that leads to phishing pages or malware. The advice is simple. Don’t scan unknown codes and treat unsolicited parcels as potential data‑harvesting attempts [8][9].

Report unsolicited packages without scanning

Report to the platform if branded, and to local authorities when appropriate. Keep the mailer and label as evidence. Platforms and carriers use these reports to shut down abusive accounts and adjust fraud filters.

Secure accounts, credit cards, and delivery profiles

• Rotate passwords on retail accounts and enable two‑factor authentication.
• Check saved payment methods and shipping addresses for unknown entries.
• Monitor statements and set up card alerts for small test charges that precede bigger fraud [8].

What To Do If You Get Scammed Importing From China

Stop payments and preserve all evidence

Halt communication with the suspected party, freeze pending transfers, and capture contracts, emails, chats, invoices, and shipping records. A clean evidence trail is the backbone for banks, platforms, insurers, and law enforcement.

Report to local customs, consumer protection agencies, and law enforcement

Notify your bank and payment platform immediately. File complaints with national consumer protection bodies and trade regulators. Alert customs if counterfeit or unsafe product is in transit or detained, since CBP and partner agencies maintain active enforcement programs on IPR and safety risks [1].

Pursue insurance, chargebacks, and legal recovery

For insured shipments, start claims within policy timelines. For card or platform payments, initiate chargebacks with documented misrepresentation. Engage counsel versed in international trade and explore asset‑recovery specialists when sums are material. Recent U.S. enforcement trends show sustained focus on customs fraud, undervaluation, and duty evasion, with multimillion‑dollar settlements signaling the stakes for importers who cut corners or get pulled into risky schemes [10][11][12].

FAQs

How to identify a Chinese scammer?

Look for inconsistent legal names across documents, reluctance to share a verifiable business license, refusal to do a brief live video walk‑through, insistence on 100% prepayment to a personal or offshore account, and pushy timelines. Cross‑check the license on China’s enterprise registry and demand third‑party audits or references that can be independently validated [6].

What are the most common scams right now?

Nonexistent suppliers, bait‑and‑switch, payment diversion via email compromise, counterfeit goods, and inflated LCL destination fees under seller‑controlled CIF/CFR terms are common. There’s also growth in tariff‑related phishing messages and QR‑code brushing that aims to harvest account credentials [2][3][8][9].

What to do if you get scammed importing from China?

Freeze payments, document everything, notify banks and platforms, report to customs and consumer regulators, and consult trade counsel. Pursue insurance or chargebacks where applicable. Then redesign controls. Move to FOB terms, add escrow or LC, require inspections, and verify suppliers through audits and registry checks [1][6][10].

Why did I get a package from China that I didn’t order?

That’s often a brushing scam where sellers create fake orders to post reviews under your name. Some packages include QR codes linking to phishing pages. Don’t scan them. Report the parcel and secure your retail accounts and cards with new passwords and two‑factor authentication [8][9].

Are scams different for importers in Europe, Australia, or Africa?

The tactics are similar, but the regulatory triggers vary. Europe emphasizes CE and REACH documentation. Australia and New Zealand enforce strict biosecurity rules. Many African and South American customs regimes require certificates of conformity and show variable processing times. Local brokers and pre‑shipment verifications help in all cases.

Methodology and Sources

This guide consolidates recent enforcement data from U.S. Customs and Border Protection, industry analyses of freight fraud and cargo theft, and current guidance on brushing and QR‑code phishing. Policy and enforcement updates from 2024–2025 inform tariff, de minimis, and forced‑labor context. Practical checklists reflect widely adopted sourcing and inspection protocols validated by third‑party audit and inspection firms. Key claims include inline citations. When precise, recent figures were not available in the provided research, details are framed as editor‑verified practice guidance rather than quantified statistics.

References

1. U.S. Customs and Border Protection. Trade statistics and enforcement snapshots. Available at: https://www.cbp.gov/newsroom/stats/trade
2. Transportation Intermediaries Association; industry reporting on freight fraud and cargo theft losses. Foreigh. The Definitive Freight Fraud Report: 2025 analysis. Available at: https://foreigh.com/blog/freight-fraud-deep-dive
3. Reuters. U.S. policy changes affecting low‑value shipments and tariffs in 2025. Available at: https://www.reuters.com/business/autos-transportation/china-low-value-package-tariff-exemption-ends-questions-remain-over-us-2025-05-02/
4. U.S. Congress. Protecting American Industry and Labor from International Trade Crimes Act of 2024. Available at: https://www.congress.gov/committee-report/118th-congress/house-report/784
5. U.S. trade compliance commentary summarizing CBP focus areas in 2025, including undervaluation, misdeclaration, sanctions, and forced labor screening. Jet Worldwide and related summaries.
6. Wedoimport. Supplier verification checklist and due diligence steps. Available at: https://www.wedoimport.com/our-proven-checklist-to-verify-chinese-suppliers-and-avoid-import-scams/
7. MingTa Group. Common frauds when importing from China. Available at: https://mingtagroup.com/en/most-common-frauds-when-importing-from-china/
8. McAfee. How to protect yourself from brushing scams. Available at: https://www.mcafee.com/blogs/tips-tricks/how-to-protect-yourself-from-a-brushing-scam/
9. Tom’s Guide. FBI warning on QR‑code phishing variations. Available at: https://www.tomsguide.com/computing/online-security/fbi-issues-warning-to-all-smartphone-users-a-dangerous-new-scam-could-be-at-your-door
10. Gibson Dunn. New tariffs and False Claims Act scrutiny on importers. Available at: https://www.gibsondunn.com/new-tariffs-promise-increased-false-claims-act-scrutiny-on-importers-and-other-companies-in-the-import-chain/
11. DLA Piper. FCA enforcement trends tied to customs duties. Available at: https://www.dlapiper.com/en-us/insights/publications/2025/08/fca-trade-settlements
12. U.S. Customs and Border Protection. Trade News Snapshot Volume 6, Issue 11. Available at: https://www.cbp.gov/trade/snapshot/trade-news-snapshot-volume-6-issue-11

Summary Takeaway

Import scams from China thrive in the gaps. Close them with rigorous supplier verification, escrow or LCs, tight specs with inspections, buyer‑controlled freight terms, and live customs monitoring. Next step. Convert these practices into a written SOP and run the next order through it. The payoff is simple. Fewer surprises, safer cargo, and a business that scales on facts, not hope.