Case description:
This company cheated me out of $2000 USD. Our terms were $200 USD for shipping, $1000 USD once the tracking info was verified and the balance of $1460 USD paid once the package was received. This guy said that he was going to use a local courier. He gave the website and tracking number for checking. When it showed "package now on hold in London", I sent $1000 USD as per the agreement. After that the company demanded the balance right away. He said his superiors wanted payment in full due to something about an audit and not being allowed to give credit to people from the USA. He said I needed to send at least $800 more and he'd take care of the rest. So I scraped up $800 more and sent it. Then he came with a new excuse. Something about a death in the family and if I wanted my package I needed to go ahead and pay the last $660! So basically, he's made up some fake business and website and is using it to con people into believing that there package is on the way. Then he puts the package "on hold" and says "if you want your package, I'm going to need more money".
Analysis of this case:
1. Avoiding use unknown shipping websites. It is a risky to allow unknown shipping websites to deliver your products. Before you accept this delivery method, do your own due diligence, including searching the shipping website on search engines to see what others have to say. Or you can go to http://www.whois.com/ to search for registered information of this website. Be wary if the domain of this website was created less than three months ago.
2. When your supplier is making excuses about the delivery (or lack thereof) of products and asking for additional payment, it is generally a trick.
3. Search the company name on the forum or search engine to find something useful to you. Or you can contact Alibaba's service team.
Click to see other Fraud Case Studies:
Fraud Case Study 1 - Gold Supplier Identity Theft
Fraud Case Study 2 - the "Low Price" trap
Fraud Case Study 3 - False information
Fraud Case Study 4 - Meeting your supplier for the first time
Fraud Case Study 5 - The Contract trap
Fraud Case Study 7 - Remain Vigilant!
Re: Fraud Case Study 6 - False Shipping Website
by Directzilla on 24 May 2008 10:09
I would have to argue with your comments above. Pure and Simple...Use basic common sense. I know of many companies who have done business for 50+ years and have just opened up a website. In this age, a company has to create and open a website for their customers, or they will be kicked to the curb. Whether it is 5 years ago or last week, a companies verification should not be based upon when a domain name was registered as per your "Whois" check.
I would like to know how you accepted his excuse of a recent death, when he obviously had superiors or management as he had stated to you. If this was the case, another rep. or his superior should have taken over your account in his absence as any true company would have.
I want to emphasize common sense, since it was lack there of in your case. You had set an agreement in which both parties I assume were required to follow. Did you even request a P.O.?
I appoligize if I seem harsh, but don't attempt to run with the big dog's if you are lacking basic skills or knowledge. Always..and I mean always, start small and you will grow. Attempting to start big will bite you in the end. If you are unsure of an international customer, then request for a third-party agency to pick up the merchandise and ship it for you. If they have available stock, this will not be an issue.
Re: Fraud Case Study 6 - False Shipping Website
by Remus on 01 Jun 2008 11:37
Quoting from [ResourcesAdmin]:Case description:
This company cheated me out of $2000 USD. Our terms were $200 USD for shipping, $1000 USD once the tracking info was verified and the balance of $1460 USD paid once the package was received. This guy said that he was going to use a local courier. He gave the website and tracking number for checking. When it showed "package now on hold in London", I sent $1000 USD as per the agreement. After that the company demanded the balance right away. He said his superiors wanted payment in full due to something about an audit and not being allowed to give credit to people from the USA. He said I needed to send at least $800 more and he'd take care of the rest. So I scraped up $800 more and sent it. Then he came with a new excuse. Something about a death in the family and if I wanted my package I needed to go ahead and pay the last $660! So basically, he's made up some fake business and website and is using it to con people into believing that there package is on the way. Then he puts the package "on hold" and says "if you want your package, I'm going to need more money".
Analysis of this case:
1. Avoiding use unknown shipping websites. It is a risky to allow unknown shipping websites to deliver your products. Before you accept this delivery method, do your own due diligence, including searching the shipping website on search engines to see what others have to say. Or you can go to http://www.whois.com/ to search for registered information of this website. Be wary if the domain of this website was created less than three months ago.
2. When your supplier is making excuses about the delivery (or lack thereof) of products and asking for additional payment, it is generally a trick.
3. Search the company name on the forum or search engine to find something useful to you. Or you can contact Alibaba's service team.
Click to see other Fraud Case Studies:
Fraud Case Study 1 - Gold Supplier Identity Theft
Fraud Case Study 2 - the "Low Price" trap
Fraud Case Study 3 - False information
Fraud Case Study 4 - Meeting your supplier for the first time
Fraud Case Study 5 - The Contract trap
Fraud Case Study 7 - Remain Vigilant!
Fraud case study 20 - big purchase order trap
Author: Safe Trading Admin
Fraud case study 19 - for newcomers on alibaba
Author: Safe Trading Admin
