How to avoid getting scammed by a supplier you've never met.
Most supplier scams follow the same script: a deposit paid on trust, then silence. Here's what to watch for before you wire a cent — and why escrow removes this risk from the equation entirely.
Four things a legitimate supplier will never ask of you.
A personal account, not a business one
You're asked to wire money to a bank account in someone's own name rather than the company's — a classic sign there's no real structure behind the order.
No verification possible
The supplier refuses any video call, proof of factory or stock, or any independent check on who they actually are.
An unusually large deposit
You're asked for far more than the usual 30% before the order is even confirmed, with no clear justification.
Pressure to pay right now
"This price is only good if you pay today" or "another buyer is waiting" — urgency is a manipulation tactic, not a sales argument.
The 30/70 deposit split reduces risk. It doesn't remove it.
Paying 30% upfront and 70% on delivery is common practice — and a reasonable one. But it still relies entirely on trust: once your 30% is sent, there's no guarantee it comes back if the supplier disappears or changes the terms midway.
That's exactly the gap escrow closes: instead of sending the deposit directly to the supplier, you lock it in a neutral account that neither of you controls alone. It only releases once the agreed terms are met — otherwise, it comes back to you.
You don't have to trust blindly anymore.
Money locks, it doesn't leave
Your payment locks into on-chain escrow the moment you fund the deal — it only reaches the supplier once delivery is confirmed.
Refunded if nothing arrives
If the goods never show up, you simply don't release the funds — a dispute can be opened and the money stays protected.
Works for groups too
The same protection applies if you're pooling the order with other buyers — everyone's share stays protected separately.