Small business owners victimized by fraud almost never get their money back. Prevent supplier swindles by adopting a written purchasing policy, which includes a list of your approved vendors. A specific credit check procedure must be completed for a new vendor to be added to this list, with no exceptions, regardless of how good the deal appears. Also ask for their Dun and Bradstreet number and rating. Although there are fees for these credit verification services, it is money well spent.
Fraudulent suppliers tend to resist providing such documents.
If you are purchasing inventory that will ultimately be resold to your customers, it is imperative that you also receive samples of the goods before you place an order so you can verify the quality is acceptable. Otherwise you may suffer the double-whammy of alienating your own customers in addition to receiving shoddy merchandise. In the old days, your word was your bond, but sadly this is no longer the case. Always require a purchase order be issued by your business for every purchase. Businesses with shabby procedures are easy prey for fraudulent suppliers.