Supplier Scam
Supplier scams involve fraudsters posing as legitimate suppliers to deceive businesses or individuals into making payments for goods or services that are never delivered.
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Supplier scams disproportionately affect small and medium businesses in Singapore. Fraudsters create convincing fake supplier websites or impersonate established vendors to intercept orders or redirect payments to fraudulent accounts. With business email compromise tactics, these scams can cause substantial losses before the deception is discovered.
How Supplier Scams Are Carried Out
1. Fake Supplier Websites
Scammers create professional websites impersonating legitimate suppliers with competitive prices. Businesses place orders and pay, but goods are never delivered and the scammer disappears.
2. Impersonation of Established Suppliers
Scammers pose as well-known suppliers using near-identical email addresses or spoofed communications to redirect legitimate payments to fraudulent bank accounts.
3. Non-Delivery of Goods
After payment is received, scammers stop responding. When victims contact the real company, they discover the order was never placed with them.
4. Invoice Fraud
Criminals intercept or modify legitimate invoices to redirect payments. Businesses pay the correct amount but to the wrong account, with no indication until delivery fails.
What to Look Out For
How to Protect Yourself from Supplier Scams
Verify All Suppliers on ACRA BizFile
Before engaging any new supplier, verify their registration at bizfile.gov.sg. Legitimate businesses have verifiable registrations and traceable contact information.
Confirm Payment Details via Independent Call
Always call a verified contact number to confirm bank account details before making any payment, especially if you receive notification of changed details by email.
Report Supplier Scams Immediately
Report fraudulent suppliers to SPF at 1800-255-0000 and to ACRA. Retain all communications and transaction records as evidence for investigations.
Report a Supplier Scam
If your business has been defrauded by a fake supplier or you have encountered suspicious payment redirection, report it immediately.
Supplier Scam: Your Questions Answered
Supplier Scam in Singapore: Your Questions Answered
This scam targets companies by impersonating vendors or suppliers and sending fake invoices with new payment details.
Stay Informed, Stay Protected
Supplier scams can cripple businesses. Always verify suppliers and confirm payment details through independent channels.