A Calgary business is facing a severe financial setback after falling victim to a refund fraud scheme, leaving it nearly $5,000 out of pocket. Wicked Alternative Body Fashion, a small family-run company with three locations, encountered this issue at its Chinook Centre store. Lindsey Heintz, a co-owner, described how a man entered the store and managed to process an unauthorized refund on a debit terminal, apparently resulting in the loss of $4,800.
Initially, the business received support from their service provider, Moneris, which placed a hold on their account and refunded the money. However, complications arose when Mastercard disputed the claim and returned the funds to the alleged fraudster, asking the retailer for documentation to prove the legitimacy of the transaction. Despite providing evidence, Wicked Alternative still finds itself in a challenging situation, with their claim denied.
This issue has left the company struggling for recourse, highlighting a gap in support for small businesses dealing with such fraudulent activities. The emotional toll on the owners and staff has been significant, as they are now grappling not only with financial strain but also a sense of violation.
Experts, such as Arthur Schafer from the University of Manitoba, emphasize the responsibility of banks and service providers to protect small businesses from fraud. Schafer notes the failure of red flags being raised during the transaction, which could have prevented this situation.
As Wicked Alternative looks to salvage the situation, Heintz remains hopeful for a resolution that would restore their finances and trust in the system. The family-owned business, which does not normally handle transactions of this magnitude, is calling for more accountability and efficient fraud prevention measures from their financial partners.
