Opinions, knowledge and resources from China Checkup's expert contributors

Online Fraud in China

by Matt Slater October 31, 2014

Online Fraud in China

Recently we have been hearing of increasing concern among both companies and individuals about the risks of online fraud in China.

While there are many positive aspects of conducting business online, such as convenience and the lure of low prices, it is important to protect yourself by ensuring that your business partner in China is operating legitimately.

Where Online Fraud Occurs

Examples of online fraud in China include fake websites that pretend to be legitimate and reputable businesses. These websites can look almost identical to the real websites, except for the fake contact details that consumers are directed to.

Scammers are also active on online marketplaces like Alibaba.com, and we have heard of many companies in China that have sold fake goods, or charged for goods that were not as described or never actually arrived.

My colleague Aileen wrote more about this earlier in the year in this article.

Who is Affected

China is not only a market for big businesses, but also for small and medium-sized businesses around the world. Such has been the explosion in trade over recent years that many companies now commonly see China as their first stop for sourcing, given the almost limitless sourcing possibilities available.

Online fraud in China is a common concern though, and it creates many fears for business owners who want to succeed from their activities in the Chinese market.

No matter their background, business owners can easily get caught up in fraudulent activity, especially if they are not familiar with local Chinese laws, languages and people.

As we wrote in this article, even Alibaba’s own website admits that being scammed is the biggest problem with buying from China. Alibaba may create supplier blacklists but is this enough to keep their users safe?

Lack of Regulations

It’s fair to say that China has minimal regulations regarding internet commerce, and it is still navigating its way through new business technologies. Another concern is the lack of a credit scoring system, and legal avenues to follow once a cybercrime has actually been committed.

Root Cause

In a recent article published in the magazine Security Asia, I made the point that among some Chinese business owners there can be a prevailing ‘attitude of wanting to make a quick buck, rather than building something over a long period of time’.

I also identified the problems with online marketplaces that connect businesses with local suppliers in China. These often do not allow customers to comment or rate their experiences. A system like this would provide a greater level of confidence for consumers, and help to identify the businesses that are legitimately providing a high level of professional conduct and customer care.

Protect Yourself from Online Fraud in China

China Checkup provides security and clarity for businesses that are trying to successfully navigate doing business in China. We have developed a range of online services that can assist business owners who want to ensure that the companies they are doing business with are legitimate, by conducting background checks on the Chinese businesses in question.

We understand that business owners want fast, affordable and reputable information on the companies that they intend to do business with in China, so they can work assertively and confidently in a region that is so geographically and culturally foreign from their own.

Avoid fraud in China. Make sure with China Checkup’s verification services and conduct your business with success.




Matt Slater
Matt Slater

Author

Hi there, I'm Matt, the founder of China Checkup. Originally from the UK, I am now based in Brisbane, Australia.

Frustrated by the scarcity of concise, high-quality and timely information about Chinese companies, I setup China Checkup whilst living in Shanghai in 2013.

My team are proud that China Checkup's company verification reports have now helped thousands of clients from all corners of the world to do business in China more safely.

  

 


Related Articles

Make These 4 Checks Before Sending a China T/T Payment
Make These 4 Checks Before Sending a China T/T Payment
One of the most common ways to pay a Chinese supplier is to make a China T/T Payment, but it is not a method that comes without risk. We regularly see cases where Chinese suppliers request payments to individual accounts, third parties, offshore acco
Read More
List of Countries with Freight Trains from China
List of Countries with Freight Trains from China
In recent years freight trains from China have been capturing newspaper headlines by arriving in more and more countries. Perhaps there is no more striking example of this then when the first China to Spain cargo train returned to Yiwu having covered
Read More
China Phone Codes - An Introduction
China Phone Codes - An Introduction
With multiple international codes, hundreds of area codes and numbers of different lengths, making sense of China phone codes can be challenging. Determining if a Chinese phone number is a mobile or a landline, and knowing where in the country it is
Read More


Also in Safer, Better Business in China

Chinese Company Registration Status Terms Glossary
Chinese Company Registration Status Terms Glossary

by Matt Slater March 27, 2019

This glossary identifies the different Chinese company registration status terms that appear on official Mainland China company records.

If you are trying to find out if a Chinese company's registration has been revoked, cancelled or rescinded we hope the terms in this glossary will be useful to you.

Keep reading to find out about the various Chinese terms used to describe a company's registration status and get our English translations.

Continue Reading

Make These 4 Checks Before Sending a China T/T Payment
Make These 4 Checks Before Sending a China T/T Payment

by Matt Slater March 20, 2019

One of the most common ways to pay a Chinese supplier is to make a China T/T Payment, but it is not a method that comes without risk.

We regularly see cases where Chinese suppliers request payments to individual accounts, third parties, offshore accounts and offshore entities, rather than to their own Mainland Chinese corporate bank accounts.

Before sending a China T/T payment, pause and take a moment to make these 4 simple checks - they will help you ensure your payment is really going to the correct Mainland China entity.

Continue Reading

List of Countries with Freight Trains from China
List of Countries with Freight Trains from China

by Matt Slater February 25, 2019

In recent years freight trains from China have been capturing newspaper headlines by arriving in more and more countries.

Perhaps there is no more striking example of this then when the first China to Spain cargo train returned to Yiwu having covered a world record 16,156-mile round trip in 2015.

Read this article to learn about China's push for international rail cargo and find our which countries have already received freight trains from China.

Continue Reading