Supplier Scams: How to Spot Them and What to Do If You've Paid

You’ve paid a supplier abroad and the goods haven’t arrived. Or a supplier whose earlier small orders went fine now wants a large payment up front, or an extra fee before they ship. It happens to well-run businesses too, and it may be a supplier scam.

Three common signs of supplier scams, and how they usually end

Supplier scams are designed to look like ordinary trade at first. Each pattern relies on looking like normal trade. A late shipment alone doesn’t make a scam.

Small orders, then a large one. A few small orders arrive as agreed. Then a much larger order is paid up front, and the goods don’t arrive.
Fake proof of shipping. You get a tracking number that looks real, but the label hasn’t been used, or a package arrives empty. Scammers often use this technique to buy time.
A demand for more money mid-order. After you’ve paid, a new fee, charge, or deposit appears, such as a customs or release fee, with a reason to pay it quickly. The goods stay one more payment away.

All three usually end the same way: the supplier stops replying once the money has moved.

Let’s take Dana as an example, a U.S. owner of a small homeware shop, who buys ceramics from a supplier abroad. Three orders of about 800 USD each arrived on time. Then the supplier asked for a 9,500 USD order to be paid in full up front, and Dana sent it through Remitly Business. A day later, the supplier asked for a 1,200 USD release fee before shipping. That’s the first and third patterns together, and it’s the moment to act.

What to do right away if you think you’ve paid a scammer

If you think a supplier is scamming you, act now rather than wait to be sure. If the payment hasn’t been delivered yet, try to cancel it, and send no more money either way. Acting early matters because some steps only work while the payment is still on its way. The rest, from reporting to keeping evidence, you can do in order once the payment itself is handled.

If you used Remitly Business to pay the supplier, start with the payment itself, because canceling only works before the payment is delivered. Work through the steps in this order, even if you’re not yet sure it’s a scam.

Cancel the payment if it hasn’t been delivered. Do it straight away, and contact Remitly if you can’t. Eligible Remitly Business transfers can be canceled before delivery, depending on how far the payment has gone and the conditions that apply. Review exceptions can apply. Canceling starts the refund, but it may take time to reach your account. Carry on with the next steps while you wait.
Tell Remitly what happened. Report it through Remitly’s Help Center with the transfer details. Ask what can still be done with the payment, and have your evidence ready (see the evidence section below).
Call the bank or card that funded the payment. Tell them a supplier scammed you, and ask whether they can stop or reverse the payment.
Report the scam to the authorities. File a report with the FBI’s Internet Crime Complaint Center (IC3), and report it to the FTC at ReportFraud.ftc.gov. Note each report’s reference number as you go.
Don’t send more money to the supplier. Whatever reason they give for releasing the goods, treat a new demand for money as part of the scam.

For Dana, that means trying to cancel the 9,500 USD payment first and paying none of the 1,200 USD release fee, then working through steps two to four without waiting.

Keep the evidence and a record of every report

Remitly, your bank and the authorities will likely ask for much the same proof, so gather it once and keep it in one place. Start with what you have; your first report can go in before the file is complete.

The payment: the transfer reference, amount, and date, and the recipient details you paid to.
The deal: the order or invoice, what was promised and when, and any request for more money.
The contact: emails, chat messages, phone numbers, screenshots, and any tracking numbers. Remitly’s scam resources page lists the same kind of details.
The reports: for each one, the case or reference number, who you spoke to, and when.

Dana’s file would hold the 9,500 USD payment reference, the three earlier invoices and the new order, the message asking for the release fee, and a line for each report with its reference number.

Can you get your money back from a scammer?

Getting the money back is possible but not certain. It depends on how quickly you act and whether the payment has been delivered. So, work through the steps in order, starting with the payment.

Before delivery, canceling is the step that can stop the payment (step one). After delivery, ask Remitly what can still be done, and ask your bank to act quickly. Either way, the steps and your record of each report are what keep that chance open.

Treat anyone who contacts you offering to recover the money for a fee as a second scam. Government agencies and legitimate organizations won’t ask for money to help you get a refund, so pay nothing to a stranger who promises one. The FTC explains how these recovery scams work.

Before you pay a supplier again: a short checklist

The three patterns turn into checks you can run before your next supplier payment, especially a larger one or one paid up front.

Check a new supplier yourself. Look up the business and a way to contact it on your own, rather than relying only on what the supplier sends you. This guards against a supplier who exists only in their own messages.
Treat a much larger order as a new decision. Good small orders don’t vouch for a big one. Where you can, pay in stages tied to what you can check, such as a sample or a shipment you can track.
Treat any request for more money as a separate decision. Ask what changed, and check the request against the order you agreed.
Take your time when someone pushes you to pay quickly. Pressure to pay fast is a warning sign. Use that time to check the supplier’s details and that the amounts match the order you agreed.
Confirm any change to a supplier’s bank details by phone, using a number you already have.

Each check adds a pause at the point where these patterns need you to hurry, though no check prevents every scam. For more on what to check before paying abroad, see these common international payment mistakes and the FTC’s guide to scams that target small businesses.

Remember the signs, and act on the first one

The signs are the three patterns: small orders then a large one paid up front, proof of shipping that doesn’t hold up, and a new demand for money mid-order. Act on the first one rather than wait until you’re sure. Your next steps run in order: the payment first, then Remitly, your bank, and a report.

If you’re worried about a payment right now, report it through Remitly’s Help Center.

Common questions

Is it worth reporting a supplier scam to the police?

Reporting to your local police is worth doing as well as the federal reports. You can bring the same evidence: phone numbers, email addresses, payment receipts, and screenshots. Add the police report’s reference number to your record.