Shoplifting has long been the bane of small businesses and now thieves have moved online, with frustrated traders reporting customers making fraudulent claims for their money back.
The fake refund claims — instigated by shoppers requesting transaction reversals, known as "chargebacks", through their banks — have been labelled theft and led to shop owners calling for greater protection from cyber criminals.
Sydney fashion boutique owner Ainslie told The Business she had lost thousands to chargebacks in recent months and had little success convincing banks not to take money back after purchasers falsely disputed charges on their credit cards.
Ainslie, who asked to identified by her first name only, said she had not heard of the practice until she was duped by a woman who seemed like a genuine customer — a case of what has been dubbed "friendly fraud".
"I actually did speak to [her] on the phone, so she actually asked me about the sizes and I told her what size to get and then she then ordered it online," Ainslie said.
"Then maybe five or six weeks later, I got the [chargeback] and I tried to call her and she just hung up."
A chargeback is the reversal of a purchase, in this case online, initiated by a customer through their bank.
Customers may lodge legitimate chargebacks if they are charged for an order they never receive and are denied a refund by the retailer, or if they notice card charges for purchases they have not made....
Shoplifting has long been the bane of small businesses and now thieves have moved online, with frustrated traders reporting customers making fraudulent claims for their money back. The fake refund...