Internal Fraud Within Alibaba Sparks Thousands Of Illegal Sellers Online…

Massive news in the overseas suppliers market as Alibaba experiences a major internal fraud, that saw thousands of suppliers bypass the normal verification procedures to advertise on the site to normal businesses wanting products from overseas.

It seems the methods of the perpetrators suggest that they had engineered an organised and systemic attack on the integrity of the platform for illegal gains states the CEO.

The issue is that on the site, sellers can display that they are “Gold Suppliers”, meaning they have been verified using a process administered by the company. However, sales personnel were found to have been “directly responsible in allowing the fraudsters to evade” those procedures. About one hundred employees assisted fraudsters in bypassing verification procedures.

As a result, buyers were tricked into doing business with these fraudsters and never received goods for which they paid. The average value of each fraud was about $1,200 and were typically in the electronics sector.

The fraud comes in the middle of a long-term strategy to gain prominence in the Asian market as it works to become one of China’s key suppliers.

From an Australian perspective, there are lots of people buying goods online now, and with the dollar being at a high it’s a good time to think about the risks. When you go online to buy, are you buying from a reputable retailer? Does the site distribute these goods or does someone else do it? Do you know them? Are they legitimate? Are they a true manufacturer or a middle man? Have you looked into the background of the company?

You need to weigh up the risks in your transactions and make sure you are taking the safest route to connect with legit suppliers for your eBay business. So always do your back ground checks regardless of who the supplier says they are, best to be on the safe side!

Til next time, have a magic eBay day!

Matt & Amanda Clarkson

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