Timber Supplier Scams: Warning Signs and How to Protect Your Money

The international timber trade is full of honest mills, exporters and agents. Unfortunately, it also attracts fraudsters, because buyers often pay large sums to companies on other continents that they have never visited. Every year, importers lose deposits to fake exporters, pay invoices into hijacked bank accounts or receive containers of the wrong wood. Learning the patterns behind timber supplier scams is the best way to protect your money and your business.

In this guide we describe the most common scams we hear about from buyers, the warning signs, and the practical checks you can make before paying anyone, including us. At Global Timber Trade Hub we encourage every buyer to verify suppliers properly, because a careful buyer is a better long-term partner.

Why timber attracts fraud

• Buyers and sellers are often far apart and never meet.
• Orders are large, often tens of thousands of dollars per container.
• Payments are often made in advance or partly in advance.
• Species and grades are hard to judge from photos.
• Documents are complex and unfamiliar to new importers.

Scam 1: the fake exporter

A professional-looking website, social media profile or marketplace listing offers a wide range of species at attractive prices. The “company” replies quickly, sends a proforma invoice and asks for a deposit, often 30–50%. After payment, communication slows, then stops. The company may not exist, or may use the name of a real company without permission. Warning signs include no verifiable address, no landline, free email addresses, no mill photos with identifiable details, and refusal to send dated photos or videos of the actual stock.

Scam 2: prices too good to be true

Fraudsters attract buyers with prices far below the market for premium species such as ebony, padouk, bubinga or afrormosia, or offers of large volumes of logs from countries that restrict log exports. Real exporters face real costs for harvest, sawing, drying, taxes, permits and transport. If a price is well below what established suppliers quote, ask why. Our African hardwood prices guide gives realistic starting points.

Scam 3: changed bank details

This is one of the most damaging scams, known as business email compromise. A criminal gains access to the email of a real supplier or buyer, or creates a look-alike address, and sends a message saying the bank account has changed. The buyer pays the next invoice into the criminal’s account. The real supplier never receives the money. Always confirm any change of bank details by phone, using a number you already know, not the one in the email. Be extra careful if the new account is in a different country or a different company name.

Scam 4: advance fees for permits or documents

After an initial payment, the “supplier” asks for more money for unexpected costs: export permits, CITES permits, customs fees, fumigation, port charges or “government taxes”. Each payment is followed by another request. Genuine costs should be in the quote and contract from the start. Unplanned demands for cash are a strong warning sign.

Scam 5: fake documents

Fraudsters may send fake bills of lading, phytosanitary certificates, CITES permits, FSC certificates or inspection reports to make a shipment look real. Check bills of lading with the shipping line using the booking or container number. Check FSC certificates on the public FSC database. Check inspection reports directly with the inspection company. CITES permits can be confirmed with the management authority of the exporting country. See our FSC certified tropical timber guide.

Scam 6: wrong or poor timber

Not every problem is outright fraud. Some suppliers ship a cheaper species instead of the one ordered, a lower grade, wet timber sold as kiln dried, or short volume. Red-brown African species can be swapped easily, and grade disputes are common. An independent pre-shipment inspection and clear contract specification are the best protection. See timber inspection before shipment.

Scam 7: broker chains and “mandates”

Some offers come through long chains of intermediaries, each claiming to represent the seller or buyer, asking for commission agreements, “proof of funds” or bank letters before any real information is shared. These chains rarely lead to real timber. Deal with companies that can show you their mill, stock or supply agreements.

Warning signs checklist

• Prices well below market levels.
• Pressure to pay quickly to secure stock.
• Payment to a personal account or an account in a third country.
• Free email addresses or domains registered very recently.
• No verifiable physical address or company registration.
• Reluctance to accept letters of credit or inspections.
• Stock photos copied from other websites.
• Offers of logs from countries with log export bans.
• Repeated requests for extra fees after payment.

Why live video from the forest is rarely possible

Many buyers expect a live video call from the sawmill or the forest yard. In Central Africa, that is often not realistic. Most concessions and mills are deep in the forest, hours from the nearest town, and mobile coverage there is weak or absent. A genuine exporter may simply not be able to stream live video from the yard, so refusing a live call is not, on its own, a sign of fraud. What matters is that the supplier can give you other solid evidence: dated photos and short videos of your actual bundles, recorded on site and sent once the team reaches network coverage; bundle tags and numbers that match the packing list; company and export documents you can check; and, for first orders, an independent inspection before loading. A fraudster usually cannot produce this combination of evidence. A real exporter can.

How to verify a timber supplier

• Company registration: ask for registration documents and check them with the national business registry where possible.
• Physical presence: ask for the mill or yard address and check it on maps and satellite images.
• Dated photos and videos: ask for photos or short videos of your actual bundles, with a sheet showing your company name and today’s date placed on the timber. Mobile coverage in forest areas is often too weak for live calls, so these are usually recorded at the yard and sent once the team is back in network range.
• Permits: ask for export permits and forestry permits, and confirm they are current.
• References: ask for references from existing buyers and contact them independently.
• Trade associations: check membership of national or international timber associations, and confirm with the association.
• Visit: for large contracts, visit in person or send an agent.

Safe payment terms

For first orders, use payment methods that protect you. A letter of credit with an independent inspection certificate is one of the safest options. A small deposit with the balance against copy documents is common once trust is built. Avoid paying 100% in advance to a supplier you do not know. See our letter of credit for timber guide.

Start small

A trial order of one container, or even a mixed container, lets you test a supplier’s quality, documents and communication before committing to larger volumes. The extra cost per cubic metre is small compared with the risk of a large loss.

Check the shipment, not just the paperwork

Once the timber is loaded, check the container number and bill of lading with the shipping line’s tracking. If the shipping line has no record of the booking, stop and investigate before paying any balance.

What to do if you are scammed

• Contact your bank immediately to try to stop or recall the payment.
• Report the fraud to the police and national fraud reporting service.
• Inform the real company if its name was used.
• Report fake websites to the hosting provider and domain registrar.
• Keep all emails, invoices and payment records.

How to verify us

We welcome checks. Ask us for company documents, export permits, references, and dated photos and videos of your actual timber. Live video from the forest is rarely possible because of weak mobile coverage, so we record footage at the yard and send it once we are back in network range. We are happy to work with letters of credit, independent inspection and trial orders, and we will never ask you to pay into a personal account or change bank details by email alone. See our export process, FAQ and sustainability pages.

Scams that target sellers

Fraud runs both ways. Exporters also face fake buyers who order timber, ask for shipment on open account and never pay, or who send fake payment confirmations and ask for the bill of lading early. Some fake buyers overpay with a bad cheque and ask for a refund of the difference. Honest suppliers protect themselves with deposits, letters of credit and by releasing original documents only through banks or after confirmed payment. If a supplier asks for these protections, it is a sign of a professional business, not a lack of trust in you.

Training your team

Many losses happen because one person in accounts pays an invoice without knowing the warning signs. Share a short written procedure with everyone who handles supplier payments: never change bank details without a phone check, never pay to personal accounts, and escalate any urgent or unusual request to a manager. Review the procedure once a year and after any near miss. This costs nothing and blocks the most common and most expensive scam in international trade.

Common mistakes

• Trusting a website alone: anyone can build a professional-looking site.
• Paying bank detail changes without a phone check: the most costly mistake.
• Skipping inspection: wrong timber is hard to fix after arrival.
• Chasing the lowest price: it is often the riskiest offer.

Our honest advice

Treat every new supplier with friendly caution, including us. Verify the company, see the timber on a live call, start with a trial order, use secure payment terms and arrange independent inspection. Confirm any bank change by phone. These simple steps stop almost all scams.

Sources

• FBI Internet Crime Complaint Center (business email compromise)
• Action Fraud (UK)
• FSC certificate database

Related guides

• How to import timber from Africa
• African timber exporter
• FOB vs CIF timber
• Lacey Act timber imports
• Buying timber logs from Africa

Frequently asked questions about timber supplier scams

How can I tell if a timber supplier is real?

Check registration, address, permits and references, ask for dated photos or videos of the actual stock, and use independent inspection for first orders.

Is it safe to pay a deposit for timber?

Only to a verified supplier; for first orders, a letter of credit is safer.

What is the most common timber payment scam?

Changed bank details sent by email; always confirm by phone using a known number.

Are very cheap ebony or padouk offers genuine?

Prices far below market are a major warning sign; ask why and verify carefully.

Talk to us safely

Send your enquiry through our quote form. Ask for any verification you need, and we will be happy to provide it.