Common Chinese Supplier Deposit Fraud Patterns

Supplier fraud follows predictable patterns. Recognizing yours helps us move faster.

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Ghost Supplier

Company took your deposit, stopped responding. May have had a Alibaba or trade show presence that looked legitimate but was always intended to defraud.

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Bank Account Switch

Supplier changed payment bank account "at the last minute" — often Business Email Compromise (BEC) fraud, either by the supplier or a third party.

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Shell Entity

The company you paid was a shell or front company with no real manufacturing capacity. The actual factory is a different entity that denies responsibility.

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Principal Swap

After payment, the supplier transferred operations to a different entity, claiming the new company doesn't owe you anything and the original company is dissolved.

What We Can Do Even After the Supplier Disappears

Chinese companies — even fraudulent ones — leave extensive paper trails in the Chinese regulatory system: corporate registrations, tax filings, bank account records, director identification, shareholder records, and business address history.

Our complete recovery guide explains each step of the deposit fraud recovery process in detail.

  • Trace the legal entity behind the trading company
  • Identify individual principals and directors personally
  • Find connected companies and related bank accounts
  • Apply for emergency asset preservation orders
  • File criminal complaint if fraud threshold is met
  • Pursue civil recovery in parallel with criminal investigation
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£52,000 Recovered

UK medical supply company wired 30% deposit to a Chinese trading company that turned out to be a shell entity. We traced the actual manufacturer through corporate records, pursued all linked entities, and recovered funds within 4 months.

How We Recover Stolen Deposits from Chinese Suppliers

Deposit Fraud Recovery Questions

Can I still recover money if the Chinese company has dissolved?
Often yes. A dissolved company doesn't mean assets have vanished — they may have been transferred to directors or connected entities. We can pursue claims against individual principals and related companies. Chinese law also allows clawback of assets transferred to avoid debt in certain circumstances.
What if the bank account I paid was changed — is it fraud?
Changed bank account details are a red flag for Business Email Compromise (BEC) fraud. This can involve either the supplier themselves or a third party who intercepted communications. We investigate the money trail and pursue all parties who benefited. Contact us immediately if this happened — bank cooperation is time-sensitive.
The company I paid was a shell entity — who do I sue?
Shell entities are a common fraud mechanism, but they don't protect the people behind them. Under Chinese law, we can pierce the corporate veil and pursue directors and actual controlling parties personally. We identify the real principals and pursue them directly.

Other China Trade Dispute Services

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Tell us what happened — when you paid, how much, what happened next, and what you know about the company. We respond within 24 hours with an honest assessment.

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