How to Report a China Scam

by Matt Slater July 06, 2015

How to Report a China Scam

As we’re all too familiar with at China Checkup, the rise of “Made in China” has been accompanied by the rise of the China scam.

We are contacted on almost a daily basis by businesses that have fallen victim to a China scam, asking what they can do. This article provides some guidance on that.

Although we really don’t want to say "if you talked to us earlier none of this would have happened", the truth is so many of these transactions would have been called into question if a simple verification on the Chinese company had been carried out BEFORE the payment was sent.

Are You the Victim of a China Scam?

If you have fallen victim to a China scam you have likely sent money but are receiving one of the following replies:

  • No reply
  • Delayed shipping
  • Faulty / broken items
  • Wrong items
  • Requests for more payments that don’t make sense

If that sounds like the situation you find yourself in, we have below a step-by-step process in case you have been scammed by a Chinese company and are seeking guidance.

Dealing with a China Scam can be a time-consuming and frustrating process, so first of all you need to carry out a realistic evaluation to determine how significant your loss is and what you are willing to do about it. In many cases it might be better to just write off your losses and learn from the experience.

For Purchases of Limited Value

Steps to perform:

  1. Make sure you provide a clear report of the issue to the Chinese supplier via email and phone, preferably to a company Manager.
    (Mistakes do happen, so we have to eliminate this possibility first)
    If you receive no reply after 5 business days then…
  2. File a report to related organisations, e.g. Alibaba (if the supplier is listed there) and whoever facilitated your payment (e.g. PayPal or Western Union)
  3. Report the transaction issues to scam-alert/fraud-list sites in order to protect future customers.

For Purchases of Significant Value

Steps to perform:

  1. Provide a clear report of the issue to the Chinese supplier via email and phone, preferably to a company Manager.
    If no reply after 5 business days then…
  2. Do not inform the scammers you intend to make a formal complaint
  3. Prepare a comprehensive file of evidence without delay. Make copies of all correspondence, documents presented, any photos or licenses etc.
    The relevant authorities will require formal evidence in order act on a China scam.
  4. Contact the trade division of the Chinese Embassy in your country and your country’s Chamber of Commerce in China.
  5. Inform them of your situation, provide the evidence you have compiled, and request that they contact the relevant Chinese officials.

Where to Report a China Scam Online?

If you want to vent some steam and report a scam, one way is to leave your comments on a scam-alert/fraud-list website (see point 3 in section “For purchases of limited value”).

China Checkup has prepared a List of Chinese Scam Reporting Websites where you can report scams.

Reporting a China Scam on China Checkup

It should be noted that China Checkup is not a service which can directly assist with the recovery of financial assets resulting from scams or fraud.

We have a policy of not publishing any details about Chinese companies that are accused of being fraudulent or dishonest. If you want to leave comments about a specific company you can Report a Chinese Scam, but we will not publish the details on our website.

We do encourage readers however to leave comments about any scams they have experienced as a warning to help others. If this has happened to you, it would be great if you share as much detail as possible about the circumstances of the China scam, but please understand that any details about a Chinese company you make will be redacted.

How to Avoid a Potential China Scam?

You can watch out for China scam warning signs and be aware of real life scam cases, but most of all you should verify, verify, verify!

Verify details of, and documents provided by the Chinese company in question using China Checkup’s online verification services.

Some examples of what China Checkup can do:

  • Confirm that the subject company is officially permitted to engage in the business activities it claims
  • Verify the authenticity of ISO documentation shown to clients by Chinese companies
  • Confirm that the Chinese company is permitted and able to engage in foreign trade services

Further Information




Matt Slater
Matt Slater

Author

Hi there, I'm a British-Australian Engineer and Entrepreneur, recently moved back to Brisbane, Australia after nearly 9 years living in Shanghai. I founded China Checkup in 2013 because I was frustrated by the scarcity of concise, high-quality and timely information about Chinese companies.
My team are proud that China Checkup's verification reports now help clients worldwide do business in China safely. Have any questions? Email me at info@chinacheckup.com

 


Related Articles

List of Chinese Scam Reporting Websites
List of Chinese Scam Reporting Websites

If you have fallen victim to a Chinese scam it is often difficult to know who or where to turn to, and the help available can be quite limited. Even if you find it impossible to get your money back, you can help warn other potential victims (and v...

How to Avoid an Aliexpress Scam
How to Avoid an Aliexpress Scam

As Alibaba Group’s "Aliexpress" service continues to grow in popularity, unfortunately we are starting to hear more and more about the "Aliexpress Scam". In case you haven’t heard, Aliexpress is essentially a Chinese version of eBay, just the sell...



Also in Safer, Better Business in China

China Laboratory Accreditation Certificate - An Introduction
China Laboratory Accreditation Certificate - An Introduction

by Matt Slater March 09, 2017

Although many factory's have their own laboratories, few of these are independently certified so requesting testing by external testing body is a wise move in many circumstances.

These testing bodies should be accredited and you can make sure of this by requesting a copy of their China laboratory accreditation certificate.

Continue Reading

China Industry Classification System - An Introduction
China Industry Classification System - An Introduction

by Matt Slater March 03, 2017

Most large economies have systems in place for categorizing their companies, and China is no different. 

The China Industry Classification system is widely used in the collection of official statistical data on companies and organizations throughout Mainland China.

Continue Reading

The 8 Busiest China Shipping Ports
The 8 Busiest China Shipping Ports

by Matt Slater December 22, 2016

With so many products being made in China it comes as no surprise that China shipping ports are among the busiest in the world.

We've looked up the figures, and in this article present the 8 China shipping ports which handle the most shipping containers.

Continue Reading