International sourcing giant Alibaba, lead by it's COO Elvis Lee (I kid you not) has been arrested along with other named co-conspirators who were caught rigging the sourcing web site Alibaba.
It is suspected that nearly 30 % of all listings on Alibaba were fraudulent. The same worked like this.
Alibaba under Elvis Lee's approval would list fraudulent suppliers providing them with false history's, customer ratings and transaction records. The companies would operate for a limited time, defrauding people from Europe and North America for their deposits and then folding or dissappearing from Alibaba.
Reportedly Lee and cohorts raked in millions in kickbacks from the fraudsters. To add insult to injury it was found that many of the fraudulent companies were relisted on Alibaba as many as 20 times under new aliases.
Next time you are considering doing your own international sourcing this may be something you take into account.
No comments:
Post a Comment