As the year-end shopping season approaches, cross-border e-commerce sellers are gearing up for peak sales periods. However, lurking risks threaten to undermine their preparations. Recent months have seen a surge in fraudulent activities targeting the industry, causing significant financial losses and reputational damage.
Supply Chain Vulnerabilities: Former Employee Scams Multiple Sellers
The complex nature of cross-border supply chains, with their inherent information asymmetries, has created opportunities for fraudsters. A recent case involving a former supply chain employee has drawn widespread attention.
The individual, identified as Sheng, allegedly impersonated his former employer to defraud multiple sellers. After leaving his position at a supply chain company, Sheng reportedly posed as an employee of logistics company A to collect goods from sellers. He then allegedly resold these goods to another supply chain company D while pretending to represent company C.
In a parallel scheme, Sheng allegedly collected goods from other sellers while impersonating company C, only to disappear after receiving payments. The fraud left sellers without both their goods and payments, while the legitimate companies suffered reputational damage. Reports indicate at least a dozen sellers fell victim, with losses exceeding one million yuan from just two affected companies.
Ecomobi's Proactive Measures: Combating Impersonation Fraud
Beyond supply chain fraud, criminals have increasingly targeted sellers by impersonating established e-commerce companies. Shenzhen-based Ecomobi, a major cross-border seller, recently issued warnings about fraudulent activities conducted in its name.
The company clarified that scammers had been using its brand for fake job recruitment and investment schemes. Ecomobi emphasized it operates exclusively in cross-border e-commerce and has never authorized any third parties to offer investment services or external hiring.
Parent company Huakai Ecomobi announced comprehensive reforms to its third-party store operations as a preventive measure. While initial plans called for completing these reforms by December 2020, implementation delays meant third-party stores still accounted for 12.12% of Ecomobi's revenue in 2021.
By August 2022, the company had processed 456 third-party stores, either transferring ownership or closing them entirely. This initiative aims to enhance operational compliance while preventing unauthorized parties from misusing the Ecomobi brand.
Ecomobi's Strategic Growth: Diversification Drives Performance
Ecomobi's strong market position and financial performance have made it an attractive target for impersonation. The company reported revenues between 3-3.1 billion yuan in the first three quarters of 2022, with net profits reaching 175-195 million yuan. This performance enabled parent company Huakai Ecomobi to return to profitability.
Strategic product diversification has supported this growth. Ecomobi has deliberately reduced exposure to saturated categories like 3C electronics and apparel, instead focusing on home and garden products, industrial supplies, health and beauty items, and auto parts.
Financial reports show home and garden products generated approximately 438 million yuan in the first half of 2022, leading all categories. Industrial and commercial products followed with 364 million yuan, while automotive parts and health/beauty products contributed 284 million and 232 million yuan respectively. Seasonal heating products also showed significant sales growth.
Fraud Prevention Strategies for Sellers
Industry experts recommend several precautions to mitigate fraud risks:
- Conduct thorough due diligence when selecting logistics and supply chain partners
- Verify counterparty identities through official channels before transactions
- Exercise caution with unusually low pricing offers
- Safeguard sensitive business and financial information
- Report suspected fraud immediately to authorities
As the industry continues its rapid expansion, maintaining vigilance against evolving fraud schemes remains critical for sustainable growth. Ecomobi's proactive compliance measures demonstrate how leading players can help establish industry best practices while protecting their operations.