How to avoid getting scammed by a supplier in India

Most supplier scams are not clever. They repeat a handful of patterns, and once you can name them, they are easy to sidestep. The through-line is almost always the same: get you to send money fast, before you have verified anything. Slow that step down and most of the risk disappears.

The advance-fee trap

The classic. A price that is too good, then urgency: pay a full advance today or lose it. Once the money moves, the supplier goes quiet or the goods never match. Defuse it by keeping the advance small and tying the balance to dispatch or inspection — a genuine supplier is used to this; a scammer needs the full advance now.

The account-switch message

You agree terms, then just before payment a message arrives: "our usual account is under audit, please pay this one instead." The new account is a personal one, or a name that does not match the business. Treat any last-minute change of bank details as fraud until you have confirmed it by phone on a number you already had.

The fake or borrowed GSTIN

A GST number on a quote looks legitimate, but a number is only a claim until you check it. Verify it on the official portal and confirm the legal name and state match the business you are dealing with. A cancelled GSTIN, or one registered to a different name, is the tell. This is one reason vetting matters — see how to vet a supplier.

Sample-then-switch

The sample is perfect; the bulk batch is not. Protect yourself by agreeing a written specification, retaining the approved sample, and — for a first order of any size — paying the balance only after a pre-dispatch inspection against that sample.

The spoofed business

Scammers copy a real company's name, logo, and even its listing, then route payment to themselves. Reach the supplier through a channel you found independently — the number on their own domain, not the one in an unsolicited message — and confirm the order details match.

The habits that defeat almost all of them

• Verify the GSTIN and the bank account name before any money moves.
• Keep the advance small; tie the balance to dispatch or inspection.
• Never accept a last-minute change of account details without a call.
• Get the specification and the quote in writing, GST included.
• Do not let urgency set your pace — "price valid today only" is a pressure tactic, not a deal.

Bottom line

Scams rely on speed and a first order placed on trust alone. Verify the paperwork, keep leverage in how you pay, and slow the money down. If you would rather deal only with suppliers who have already been checked, post your requirement — we vet before any quote reaches you. For the full process, see the supplier sourcing guide.