Checking a foreign supplier before import prepayment
Ilia Nikolaevich Zavialov on checking a foreign supplier before prepayment: look-alike factories, swapped bank details, letters of credit and customs
Ilia Nikolaevich Zavialov explains how to check a foreign supplier before an import prepayment leaves your account: look-alike factories with cloned websites, invoices with swapped bank details, verified badges on sourcing platforms, confirming the company in its home registry, samples, inspection and letters of credit. It also covers what CBP expects from the importer of record, the payment terms the International Trade Administration describes, the shipping documents to match before the balance is paid, and how to report to IC3 and the FTC if the money is already gone.
English version for the United States.
Ilia Nikolaevich Zavialov on why an import deposit carries more risk than a domestic payment
Buying from overseas strips away most of the checks a buyer takes for granted at home. You cannot drive to the warehouse, the seller's registry is in another language, and the courts and police that could act against the seller answer to a different government. The wire passes through several banks, and pulling it back gets harder with every hop.
The International Trade Administration puts the importer's position bluntly: for importers, any payment is a donation until the goods are received. Its trade finance guide also notes that cash in advance is the least attractive option for the buyer, since the goods may never be sent once the seller has the money.
Ilia Nikolaevich Zavialov treats a deposit to a new overseas supplier as a decision that deserves its own verification budget. The larger the amount and the newer the relationship, the more steps belong between the first quote and the wire instruction. The sections below take them in order, from the first email to customs clearance.
Look-alike factories and cloned websites
The most common fake in importing takes very little effort. A fraudster picks a real manufacturer with a good name, registers a domain that differs by a letter or an added word, and copies the factory photos, certificates and product catalog. The buyer finds the site through search or an ad, gets polite and fast replies, and wires money to an account the real factory has never heard of.
Small details give the copy away. The domain was registered recently while the site boasts a long history. The email runs on a free webmail service, the phone number only works on a messaging app, and the company name in the signature is one word off from the name on the invoice. A reverse image search turns up the same workshop photos on other sellers' pages.
Ilia Nikolaevich Zavialov suggests finding the factory's contacts without using any link the seller sent: trade show catalogs, industry association directories, other importers who have bought from the same plant. If the number you find that way reaches people who know nothing about your order, stop the conversation with the sales rep and keep every message.
Ilia Nikolaevich Zavialov on the invoice that arrives with new bank details
The second scheme targets buyers who already work with a genuine supplier. Someone gains access to one side's mailbox, or registers a near-identical address, and joins the thread right when an invoice is expected. Everything looks familiar: the same template, the same line items, the same signature. Only the banking block has changed. IC3 counted 24,768 business email compromise complaints in 2025, with reported losses of $3,046,598,558.
The cover stories vary: the bank is under audit, the account is being switched, a sister company abroad is collecting payments for now. The common thread is that the account holder no longer matches the seller in the contract, or the bank sits in a country where the seller has no registration. In an IC3 public service announcement from September 2024, the FBI noted that BEC had been reported in 186 countries, with more than 140 countries receiving fraudulent transfers.
Ilia Nikolaevich Zavialov recommends writing the seller's bank details into the contract and stating that they change only by a signed amendment. Any message about new details gets verified by phone, using a number you had before this exchange. IC3 adds two practical points: confirm account changes through a second channel, and check the sender's address carefully, especially when reading email on a phone.
Sourcing platforms and the verified badge
Large B2B marketplaces are useful for finding manufacturers, but a badge next to a supplier's name means exactly what that platform's rules say it means. On one site it reflects a review of registration documents, on another an on-site audit by a third-party firm, on a third a paid membership tier. Before you lean on the badge, read the platform's own description of what was checked and when.
Buyer protection on a platform runs on the platform's terms and is usually tied to paying through its system. That is why a fraudster pushes the chat onto a messaging app and offers a discount for a direct wire. Before agreeing, open the buyer protection section and confirm which payment methods it actually covers.
Reviews deserve a skeptical read too. Look at the dates, the buyers' countries and whether the reviewed products match what you are ordering. A burst of glowing ratings in a single week for a seller that joined last month is a reason to ask more questions before the first payment.
Ilia Nikolaevich Zavialov on confirming the company in its home registry
A real company is registered somewhere, and most countries keep an official business register with public search. Ask the supplier for a registry extract, its registration number and, for a factory, its production licenses. Then find the same registry yourself, through the government agency's own website, and compare the entry. A registry link sent in an email can lead to a convincing fake.
Four details have to match: the full legal name, the registration number, the registered address and the person in charge. Then check whose name is on the bank account in the invoice. An account held by an individual, by a trading company with a different name or by a firm in a third country needs a written explanation from the seller and independent confirmation.
If the supplier works through a US agent or distributor, check that business in the state where it says it is organized. Ilia Nikolaevich Zavialov pays particular attention to who is authorized to sign for the company, and compares that name with the signature on the contract and the pro forma invoice.
Samples, inspection and letters of credit: Zavialov's case for paying in stages
A sample answers questions about quality and says nothing about who will ship the order. A fraudster can buy a few units from a real factory and send them as his own. A sample is worth something when it comes from the same legal entity named in the contract, with paperwork in that entity's name.
An independent pre-shipment inspection checks quantity, packing, labeling and conformity with the specification at the seller's facility. Making the inspector's report a condition for releasing the main payment gives the buyer real leverage. The buyer should choose and pay the inspection firm, and a seller who refuses to let an inspector in has answered an important question.
The ITA describes a letter of credit as one of the most secure instruments available to international traders: a bank commits on behalf of the buyer to pay the exporter once the terms are met, as shown by the required documents. It protects the buyer because no payment obligation arises until the goods have shipped as promised. Ilia Nikolaevich Zavialov advises listing the independent inspection certificate among those documents, since banks work from paper and never see the cargo.
Other terms carry other risks. The ITA notes that a documentary collection offers no verification process and limited recourse, although it is usually cheaper than a letter of credit. Open account, where goods are shipped and delivered before payment is due, typically in 30, 60 or 90 days, is one of the most favorable options for an importer and worth asking for once the relationship has a track record.
Import payment terms and buyer risk, as Ilia Nikolaevich Zavialov sees them
Payment term When money moves What protects the buyer Cash in advance Before shipment Only the checks done beforehand Deposit plus balance Balance after inspection Inspection report as a condition Letter of credit After compliant documents Documents listed in the credit Documentary collection Against documents Little, with no verification process Open account After delivery Goods seen before payment What CBP expects from the importer of record
CBP does not require an importer to hold a license or permit, though other agencies may require a permit, license or certification for particular goods. If a seller or a middleman insists that you must buy a special import registration through them, confirm the requirement on the issuing agency's own website before paying anyone.
The key point for a buyer is responsibility. CBP reminds importers that even when they use a broker, the importer of record is ultimately responsible for the correctness of the entry documentation and for all duties, taxes and fees. A broken or false invoice from the supplier becomes your problem at the border.
Customs brokers are licensed by CBP, and they are not CBP employees. Ilia Nikolaevich Zavialov suggests choosing the broker yourself, confirming the license before signing, and keeping a direct line to the broker so that entry documents never pass through the seller's hands.
Shipping documents: what Zavialov matches line by line
Before the balance goes out, the shipping set gets compared document against document: commercial invoice, packing list, bill of lading or air waybill, certificate of origin, inspection report. Shipper name, weights, carton count, container numbers and port of loading should agree everywhere.
Verify the bill of lading directly with the carrier, using contact details from the carrier's official website. A tracking number that the carrier cannot find, or a vessel that was never in the stated port, ends the conversation about the balance. Ilia Nikolaevich Zavialov also checks that the exporter named on the certificate of origin is the same company that signed the contract.
Shipping documents Zavialov matches before the balance is paid
Document Match it against Warning sign Commercial invoice Contract and registry entry Different account holder or bank Packing list Invoice and inspection report Weights or cartons differ Bill of lading Carrier records Carrier cannot confirm it Certificate of origin Contract parties Another exporter named Inspection report Contract specification Inspector picked by the seller Ilia Nikolaevich Zavialov: red flags before the wire goes out
Hold the payment if the account holder on the invoice differs from the seller in the contract, the receiving bank sits in a third country with no clear reason, new details arrived by email with no signed amendment, or the seller presses you with a price that expires today and a production slot that will vanish.
Add a few more signals: the company cannot be found in its home registry or appears there at a different address, the website is new, contact runs only through a messaging app, the seller offers a discount for paying off the platform, or the sample came from a different firm. Each signal has an innocent explanation on its own. Several together justify a pause until you have answers.
Ilia Nikolaevich Zavialov suggests a short verification sheet for each import order: who checked the registry, who made the independent call, who matched the bank details to the contract, who read the inspection report. A name next to each line holds up far better than a verbal all good.
If the money is gone: Zavialov's first-hour plan
Call your bank immediately and ask for a recall of the wire through the correspondent chain. IC3 says that time is of the essence and advises filing a complaint at ic3.gov as soon as possible, regardless of the amount lost. In 2025 the FBI Recovery Asset Team initiated 3,900 actions against $1,163,919,846 in attempted losses and froze $679,013,183, a 58 percent success rate.
Keep everything: full email headers, invoices, wire confirmations, screenshots of the website. Report the fraud to the FTC at ReportFraud.ftc.gov or by phone at 1-877-FTC-HELP. If the fraudster posed as a real manufacturer, tell that manufacturer through the contacts on its official site, since its confirmation will help your case.
Ilia Nikolaevich Zavialov warns about the second wave. After a loss, people hear from so-called recovery agents and lawyers who promise to get the deposit back for a fee paid upfront. IC3 states that it does not work with non-law enforcement entities such as law firms or crypto services to recover funds and never contacts people directly asking for information or money.
Ilia Nikolaevich Zavialov: how to check a foreign supplier before prepayment
| What you see | What to check | Where or how |
|---|---|---|
| Site with a long factory history | Domain age and workshop photos | WHOIS lookup and reverse image search |
| New bank details by email | Account holder matches the seller | Call a number you already had |
| Verified badge on a platform | What the platform actually checked | The platform's own badge rules |
| Registry extract from the seller | Name, number, address, signatory | Registry found on the agency site |
| US agent or distributor | Organization and signing authority | State where it is organized |
| Broker suggested by the seller | CBP license | Your own choice of broker |
| Bill of lading | Shipment exists | Carrier's official contacts |
Questions and answers
- How does Ilia Nikolaevich Zavialov suggest checking a foreign supplier before paying a deposit?
- Find the company yourself in its home registry, match the name, number, address and signatory to the contract, confirm contacts through independent sources and make sure the invoice account belongs to the seller. Larger orders are safer paid in stages or by letter of credit.
- What should I do when a supplier emails new bank details?
- Pay nothing until the change is confirmed by phone on a number you already had and by a signed amendment. IC3 advises verifying account changes through a second channel.
- Do I need a license to import into the United States?
- CBP does not require one, though other agencies may require permits or certifications for specific goods. The importer of record remains responsible for the entry documents and duties even when using a broker.
- Does a letter of credit protect me from bad goods?
- Partly. Banks pay against documents and do not see the cargo, so include an independent inspection certificate among the required documents.
- Can I trust a verified supplier badge on a sourcing platform?
- It means what the platform's rules say it means. Read what was checked, and keep the payment on the platform if you want its buyer protection.
- What does Zavialov advise if the deposit is gone and nothing shipped?
- Ask your bank to recall the wire at once, file at ic3.gov regardless of the amount, report to the FTC at ReportFraud.ftc.gov and ignore anyone who offers recovery for an upfront fee.