Supplier fraud (sourcing using sites like alibaba.com) is also a big problem on the Intenret.<p>It's hard to establish trust on the Internet, especially when dealing with people from other countries where you don't know which institutions you can turn to for help (i.e., who is the Better Business Bureau of China?).<p>People will send money to a Chinese supplier and often get nothing in return. Places like Putian in Fujian province are the Chinese equivalent of Nigerian scams.<p>You'll order a set of iPhones but get a pair of shoes. Why? So that the seller can prove he sent you something (to Paypal, Alibaba, etc.) and then it just becomes your word against his.<p>If I may, I'd like to make a shameless plug for our startup. iSafeTrade.com has an inexpensive service to help buyers to vet Chinese suppliers:<p><a href="http://www.isafetrade.com/chinese-business-registration-check" rel="nofollow">http://www.isafetrade.com/chinese-business-registration-chec...</a><p>Sample report:<p><a href="http://www.isafetrade.com/chinese-business-registration-check.pdf" rel="nofollow">http://www.isafetrade.com/chinese-business-registration-chec...</a><p>The report includes information like if the supplier is legally registered and authorized for foreign trade by the Chinese Ministry of Commerce, how long they have been in business and when their website was created, which province/city their phone number is located in, etc.