Before You Wire a Deposit: Five Checks on a Supplier's Bank Details

Short answer: the commonest fraud in international trade is simple. Someone sends an email saying the supplier's bank details have changed. Before any transfer, check that the account name matches the company on the invoice, that the bank is in the supplier's country, and that the details are confirmed by phone on a number you already trust.

The five checks

1. The account name

An Indian exporter is paid into a business account in the name of the exporting entity. Export payments have to be received by the exporter itself. If you are asked to pay an individual or a differently named firm, stop and ask why.

2. The bank location

A company in Kerala banking in Kerala is normal. A request to pay an account in another country is a warning unless there is a clear, documented reason.

3. The call-back

Fraudsters get into an email thread, sometimes by hacking an account and sometimes with a look-alike address one letter different. Then they send new bank details. An email reply proves nothing, because they control the thread.

Call the supplier on a number you got before the change was mentioned: from their website, a business card or an earlier video call. Read the account number back to them.

4. The documents

Bank details should appear on the proforma invoice, with the company's name, address and registration numbers. Compare every character with any earlier invoice. See how to read a proforma invoice.

5. A test payment

For a first order, send a small amount, such as the sample fee, to the account first. Once the supplier confirms it by phone, send the advance to the same account.

If the details ever change

Treat every change as suspicious until proven otherwise.

• Do not act on the email.
• Call on the old, known number.
• Ask for a letter on company letterhead and a bank letter confirming the new account.
• Tell your own bank you are verifying a change.

A genuine supplier will not be offended. A supplier who has been through this will thank you.

Check the company too

Bank details only matter if the company is real.

• IEC: the Importer Exporter Code, checkable on the DGFT website.
• GST number: checkable on the Indian GST portal, and the legal name should match the bank account.
• Address and phone: matching across the website, the invoice and the registrations.

Our own registrations are on the verification page. The steps are in how to verify an Indian textile exporter.

If you think you have paid a fraudster

Call your bank at once and ask for a recall of the transfer. Speed matters: hours, not days. Then report it to the police and tell the real supplier.

How we handle payment details

Our bank details are printed on the proforma invoice, in the name of Anabyn Global Ventures LLP. We do not change bank details by email. If you ever receive a message saying we have, call us before doing anything.

Our terms are 50 percent advance and 50 percent on completion after inspection. See inspect before you pay, and for bank instruments, LC vs TT. To see a proforma, ask us for a quote.