Chargeback fraud scamming businesses on the rise

[Retro]

According to one victim, they never win the chargeback dispute, despite showing evidence, so no wonder this kind of fraud is on the rise. The banks are literally complicit in it and it's killing businesses, especially the small ones.

Forty Dean Street is something of an institution in London’s Soho. Nima Safaei and his sister have run the small Italian restaurant for over 15 years, and it is one of three restaurants they own in this bustling neighbourhood.

But the future of their business could be in doubt after the restaurant was hit by a fraud epidemic sweeping the hospitality industry. Safaei has lost £5,000 to fraudsters in the past three months alone.

“We are a small family-run business and are losing hundreds every week. It is daylight robbery,” says Safaei. “In 15 years, I have never seen anything like this.”

‘This is crippling us’: The new fraud epidemic hitting restaurants

Forty Dean Street is something of an institution in London’s Soho. Nima Safaei and his sister have run the small Italian restaurant for over 15 years, and it is one of three restaurants they own in this bustling neighbourhood.

uk.yahoo.com

 

[Hitcore]

Reading this with great surprise, I wasn't even aware of that this was possible. In theory a good system, unfortunately too many people abuse it. That's why I completely understand the owner resorts to this:

Safaei has now stopped accepting contactless card payments at his restaurant. He accepts Chip and PIN or Apple and Google Pay, as they require a PIN code or biometric identification, making it harder for customers to claim they are fraudulent. He says he has spoken to the police but received little help, but has not yet reported the claims to Action Fraud.

Hell, I'm a great supporter of cash. Yes, cash can be stolen, but not nearly as easily as through this scheme. Imagine being a person sitting there in that family restaurant, enjoying all the good food, being chummy with the staff, even might share a laugh with the owner, only then to chargeback what's paid like any common thief. What a shit person you'd have to be to be this fake and dishonest. From the owner's perspective this is also mentally exhausting. As he is serving customers, he can't help himself but think: "are these people for real, or are they about to screw me over the minute they walk out of here?"

 

[Retro]

What a shit person you'd have to be to be this fake and dishonest.

Dine & Dashing(tm) the virtual way. Shitty indeed.

I've recently asked staff at various restaurants when paying my bill if they get a lot of this (virtually or just walking out) and they unfortunately said yes. You can see how their face drops as they talk about it.

 

[Hitcore]

It just seems so cowardice. Even for thieves. Don't get me wrong, physically dining and dashing is morally just as bad. But it takes a certain degree of cunningness and athleticism to do this successfully. While doing the chargeback thing seems so lazy and low-effort, that literally every POS can do this, no matter how low their spatial awareness or willingness to do a runner is.
It feels like a cheat code, if that makes sense.