Fake Supplier / Advance-Payment-for-Goods Scam
A fake supplier offers goods at a great price, takes an advance payment or deposit by wire, and never ships — or ships nothing like what was ordered.
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What this scam is
A business is approached by (or finds) a 'supplier' offering inventory, materials, or equipment at attractive prices with a required advance payment or deposit, usually by wire. After payment, no goods arrive, or counterfeit/wrong items show up, and the supplier becomes unreachable. Some impersonate real manufacturers. Verifying suppliers independently, using protected payment terms, and starting with small orders reduce the risk.
What it usually looks like
- A new supplier with unusually good prices.
- A required advance payment/deposit by wire.
- Pressure to order quickly.
- A company you can't fully verify.
Common warning signs
- Wire advance payments to new/unverified suppliers.
- Prices well below market.
- Pressure and limited-time deals.
- No verifiable business history or references.
Example wording scammers use
“We can supply your inventory at 40% below market — 50% deposit by wire to start production.”
“Advance payment required to secure this batch before it's gone.”
These are illustrative examples written by ScamSplain, not real messages.
What the scammers want
- Advance wire payments for goods they won't ship.
- To exploit purchasing pressure.
- Your business/banking details.
What to do
- Verify suppliers independently (references, registration, reviews).
- Use protected payment terms; avoid large wire advances to new vendors.
- Start with a small test order.
- Be wary of prices far below market.
What to do if you already responded
- Contact your bank to attempt a wire recall.
- Report to ic3.gov and reportfraud.ftc.gov.
- Warn your industry contacts.