Sometimes a Canadian company may be asked by their legitimate and long-standing Chinese business partner to make a payment to a different bank account than the one normally used. For tax reasons, we would like you to pay in a different account than our usual one. “Dear regular customer! We will ship your recently placed order once we receive the balance of $25,000 as per our long-standing arrangement. These cases are invariably fraudulent and should be regarded with appropriate caution. In exchange, the Chinese company promises five to ten percent of the payments as a commission. The company is seeking Canada-based representatives to establish a business presence in Canada, and more importantly, to transfer payments from Canadian or U.S. If your investigation reveals that the company is registered, contact the company to confirm the identity and authority of those who have approached youĪ Canadian company may receive an unsolicited email from a Chinese company which, it turns out, is actually not based in China.Conduct rigorous due diligence on the “Chinese company”.Once the money has been paid, the Chinese company disappears without a trace. Once in China, the Canadian representatives are told that it is customary for them to throw a banquet for the host “company”, pay a notary fee, and buy gifts for the “company” officials. The Chinese “company” asks the Canadian company to send representatives to China to sign a contract. We’ve seen many cases in which a Canadian company is approached by an unknown Chinese “company” offering a lucrative business deal. Please come to China to discuss with us further and sign our contract as soon as possible. “Hello, my friend! We are pleased to inform you of our interest in your product and would like to make a purchase worth $250,000. The local company insists that representatives travel to China to sign the contract without seeing the actual products.
The local company often wants to buy products in large quantity.The local company is reluctant to provide any verifiable references.The local company contacts a random foreign company.