Fake Supplier Scams
Bogus suppliers that take payment or deposits for goods and services never delivered.
Last reviewed: 1 June 2026
What this scam is
Fake supplier scams involve fraudulent vendors who win an order or contract, take payment or a deposit, and deliver nothing — or impersonate a real supplier to intercept business.
How it works
A 'supplier' offers attractive pricing or responds to a tender. After an order and upfront payment or deposit, goods never arrive and the supplier becomes unreachable. Some clone a legitimate supplier's identity.
Common red flags
- Unusually low pricing and pressure for upfront deposits
- New supplier with limited verifiable history
- Bank details or contacts that don't match official records
- Reluctance to provide references or accept protected terms
Sanitized example messages
Illustrative, sanitized examples. Personal details are replaced with placeholders such as [phone number] and [fake link].
We can supply at 40% below market — secure your order with a 50% deposit by transfer today.
Payment methods used
- Bank transfer
- Deposits
- Crypto
Who is usually targeted
- Procurement teams
- SMEs
- Importers
What to do immediately
- Vet suppliers (registration, references, site visit) before paying
- Use protected payment terms; avoid large upfront deposits to new vendors
- If defrauded, contact your bank and report it
Evidence to preserve
- Quotes, contracts and emails
- Payment records
- Supplier details
Where to report it
- Action Fraud (UK) — UK national fraud & cybercrime reporting centre
- FTC ReportFraud (US) — US Federal Trade Commission fraud reports
- FBI IC3 (US) — US Internet Crime Complaint Center
- Scamwatch (Australia) — Australian competition & consumer reporting
- Your bank's fraud line — Use the number on the back of your card or in your banking app — never a number the caller gives you
Always verify reporting routes and emergency contacts on the official government or agency website for your country.
Frequently asked questions
How do we vet a new supplier?
Confirm company registration, request and check references, verify bank details independently, start with smaller protected orders, and be wary of deep discounts requiring large upfront deposits.