Vendor Registration Scam: How Zenith Engineering Solutions Lost ₹5,20,000

My Story: How I Got Scammed

On September 17, 2025, our company Zenith Engineering Solutions Pvt Ltd (name changed) became a victim of a business scam that cost us ₹5,20,000.

It began when we received a call from individuals who introduced themselves as authorized representatives of Larsen & Toubro (L&T). They spoke professionally, used industry jargon, and claimed they were from the vendor onboarding department of L&T. Vendor registration is the process by which companies approve suppliers by verifying their documents and credentials before allowing them to supply goods or services. Since L&T is a highly reputed company, we had no reason to doubt their credibility at first.

The fraudsters told us that our company had been shortlisted for vendor registration, but in order to complete the process, we needed to deposit a certain amount as part of an escrow-based security system. They explained that this was a standard requirement to ensure transparency and trust between L&T and its vendors.

To further convince us, they sent emails with fake but convincing documents, complete with L&T letterheads and seals. The representatives also assured us that once the funds were deposited, our vendor account would be activated within a few days and we would be eligible to receive business orders from L&T.

The amount demanded was ₹5,20,000, which they asked us to transfer to a bank account they presented as the official escrow agent account of L&T. Believing their explanation and not wanting to miss a lucrative business opportunity, we transferred the funds.

After the transfer, the communication pattern changed drastically. The phone numbers that were once easily reachable started going unanswered. Emails were not replied to. Within a week, it became clear that we had been defrauded.

How This Fraud Happened

This type of cybercrime is known as a Business Impersonation Fraud. Fraudsters exploit the name of reputed companies to deceive businesses. Here’s how it typically happens:

1. Impersonation: Fraudsters pose as officials of a trusted brand (like L&T) and use convincing documentation, emails, or phone calls.
2. Escrow Trap: They invent a requirement for an “escrow deposit” or “registration fee,” tricking businesses into transferring large sums.
3. Social Engineering: Fraudsters create urgency, suggesting delays or loss of opportunity if the payment is not made quickly.
4. Disappearance: Once the money is transferred, communication stops and the fraudsters vanish.

Warning Signs: When to Exercise Caution

• 🔴 Unverified Representatives: Calls or emails claiming to be from big corporates without official verification.
• 🔴 Unusual Payment Requests: Requests for deposits into unknown bank accounts or accounts not matching the company name.
• 🔴 Too Good To Be True: Promises of immediate vendor registration, bypassing official procedures.
• 🔴 No Official Communication: Genuine corporates usually communicate via official domains (like @larsentoubro.com), not free email accounts.

How to Prevent Such Fraud

1. Verify with Official Sources: Always confirm vendor registration processes directly with the official corporate website or helpline. Never trust numbers provided in random emails or messages. Also genuine vendor registration is done only through official company portals and usually does not require any deposit.
2. Check Bank Account Details: Genuine corporate payments are made only to accounts in the company’s official name. If asked to transfer to an individual account, it’s a red flag.
3. Cross-Check Documentation: Fraudsters often use fake letterheads and IDs. Always cross-check these with the company’s compliance department.
4. Don’t Fall for Urgency: Take time to verify before transferring large sums. Fraudsters thrive on panic and quick action.
5. Enable Internal Controls: Businesses should have internal checks for large payments, including dual approvals and mandatory verification steps.
6. Report Immediately: In case of fraud, report it without delay on the cybercrime.gov.in portal (NCRP) or call the Cyber Crime Helpline at 1930 and inform both your bank and the impersonated company.

Awareness Note:
Fraudsters are increasingly targeting businesses with high-value scams. This case shows how even established companies can fall victim when brand names like L&T are misused.

Stay aware. Stay safe.