How CNAL Consulting helped a Turkish importer recover $36,000 lost to a fraudulent Chinese supplier
Introduction: When a Great Deal Becomes a Risk
In early 2023, a Turkish importer made a $36,000 payment to a Chinese chemical supplier listed on Alibaba. What appeared to be a promising deal quickly turned into a nightmare. The supplier never delivered the goods, and the provided bill of lading turned out to be a fabricated document.
After unsuccessful attempts to contact the supplier, the company approached CNAL Consulting for help. This case study outlines how we guided the client through a complex international dispute, verified the scam, and ultimately recovered the funds through legal action in China.
1. Recognizing the Red Flags
Despite China’s vast market potential, supplier scams remain a recurring issue—especially on open platforms. In this case, the buyer had sourced the supplier via Alibaba and was persuaded by an exceptionally low price and quick delivery promises.
- Key characteristics of the scammer included:
- Offering unusually low prices with limited-time availability
- Pressuring the buyer to transfer money urgently
- Responding affirmatively to every concern or question
- Claiming immediate dispatch and showing fake documents
- Sharing false Chinese certifications to seem legitimate
2. How We Detected the Fraud
The client reached out while the shipment was allegedly in transit. To verify the bill of lading, CNAL Consulting contacted an agent in our logistics network. We worked with the shipping line referenced in the document—only to confirm that no container had been registered under the claimed booking.
This was the turning point. We advised the client to act immediately before further damage was done.
3. Escalating the Case: From Messaging to Litigation
Our first step was to compile evidence through written communications. We contacted the supplier via WeChat, keeping all messages documented. Initially, the supplier denied wrongdoing, but soon blocked both the buyer and our representatives.
Despite this, we pursued further contact through alternative channels. Eventually, the supplier stated that the goods would be shipped ‘soon’ and ended all communication.
At this stage:
– We deployed a representative in Hangzhou through our local partner to confirm the supplier’s business address.
– The company turned out to be a small, unregistered trading operation.
– We collaborated with a law firm in Guangzhou to assess legal options and begin proceedings.
4. Legal Process in China: Timeline and Requirements
While the actual court process in China was relatively swift, preparation was extensive and meticulous.
- Required documents included:
- Screenshots and logs from WeChat, WhatsApp, email, and Alibaba
- Stamped and notarized proof of payment
- Official company information and verification
- Any correspondence, certificates, or documents provided by the supplier
Understanding the Chinese legal system and working with a licensed local firm was critical to initiating an enforceable claim. CNAL Consulting participated actively in all meetings, provided translations, and guided the client through the documentation process.
Total timeline: Approximately 12 months, including all preparatory work.
5. The Verdict and Enforcement
The court ruled in favor of our client, requiring the supplier to return the full amount in six installments. However, the supplier again defaulted after the first payment.
In response, our legal team requested asset enforcement. The court approved a freeze on the supplier’s bank accounts and business assets, recovering the remaining balance through seizure.
6. Is It Worth Pursuing Legal Action in China?
Yes—with the right preparation and professional support.
- Summary of the case:
- Amount paid to the supplier: $36,000
- Legal and translation fees: approx. $4,000
- Net recovery after costs: approx. $23,000
- Total time spent: 12 months
7. How CNAL Consulting Protects Clients from Supplier Fraud
This case underlines the importance of proactive verification and ongoing risk management when sourcing from international markets.
At CNAL Consulting, we have developed a trusted sourcing framework that prioritizes security, transparency, and reliability.
- Our sourcing verification process includes:
- Vetting every supplier beyond platforms like Alibaba
- Verifying legal registration and operational scale
- Communicating directly in Chinese with suppliers
- Conducting on-site inspections through trusted agents
- Reviewing and validating all documentation and certifications
- Additional safeguards include:
- Legal checks through partner law offices in China
- Laboratory testing of product samples
- Assigning representatives during the loading and shipment process
Conclusion
This case is a strong reminder that low-cost deals can carry high risks. But with expert support, due diligence, and legal coordination, it is possible to recover lost assets and prevent future losses.
If your business sources products from China or emerging markets and you need support in supplier verification, negotiation, or dispute resolution, CNAL Consulting is here to help.
Contact us today to secure your sourcing operations and work with confidence.
