The clearest Indian supplier red flags are pressure to pay quickly, payment into an account that does not match the company, evasive answers about the factory, and documents that do not agree with each other. One flag is a reason to ask a question, and writing the answer down is useful if the supplier later changes its story. Three together are a reason to stop.
Red flags are not proof. Honest suppliers sometimes look disorganised, and polished fraudsters rarely look disorganised at all. Use the signs below to decide where to dig, then confirm facts with the checks in how to verify an Indian supplier step by step.
Red flags in how they communicate
The first group concerns behaviour. These are weak signs on their own, because small Indian firms often use messaging apps for everything.
- Pressure to commit now: a price valid for hours, or stock that will disappear unless you pay today. Real producers quote with validity of days.
- Vague answers about the plant: no address, no photographs of the process, and reluctance to do a live video call.
- Everything is possible: any product, any quantity, any certification, at once. A real factory says no sometimes.
- Contact only through chat apps and free email addresses, with no company domain or landline.
Red flags in documents
Documents are the strongest group, because you can check them. See verifying a GST number and checking an IEC code.
- Names that do not match: the legal name on the GST record, the IEC, the invoice and the bank account differ without explanation.
- Registrations that cannot be found or are recent against a long claimed history.
- Certificates with no issuing-body reference, no date, or with details that the issuing body does not confirm. Verify certificates with the issuer, not the supplier.
- Photographs and videos that look generic, or that you find on other companies' sites.
Red flags around money
Payment flags matter most because they are the moment when a problem becomes a loss. Ask where the money goes, in whose name, and what you get in return if the goods are wrong. A supplier with nothing to hide welcomes those questions, and may even suggest staged payment itself. For more on this, see paying the factory directly or through an agent. Our guide on checking bank details on an invoice covers the confirmation habit that defeats the commonest trick.
- A request to pay into a personal account, a third party's account or a different country.
- A last-minute change of bank details by email.
- A large advance with no inspection, no document release and no remedy if the goods fail.
- New fees appearing after you have paid, such as clearance, registration or insurance fees.
Questions that test a supplier fairly
Honest suppliers can answer a few simple questions without discomfort, so ask them early.
- Which legal entity will invoice me, and which bank account will receive payment?
- Which plant will make my order, and can someone from my side visit it before I pay a balance?
- Who are two overseas buyers I can contact, and what did you ship to them last year?
- What happens if the lot fails a test or an inspection, and who bears the cost?
A decision rule
Count the flags. None: proceed with normal checks. One: ask the supplier directly, in writing, and judge the answer. Two or more: do not pay anything until a site visit or an agent's audit confirms the business. Any flag around money: pause the payment whatever the other results are.
If you have already paid, contact your bank at once. Time matters. For the common patterns, see how fake exporters and export scams work.
Red flags that apply to agents too
Everything above applies if the party you are dealing with is a sourcing agent rather than a supplier, with one extra: an agent that will not say how it is paid. See red flags when choosing a sourcing agent.
How we work
We audit manufacturers, check documents, test lots and supervise loading, and you pay the factory directly. One written fee, agreed in advance, is our only income from your order. Book a free sourcing review if you want a second pair of eyes on a supplier.