Melissa Clarke: A growing number of small businesses are being targeted by a very modern type of theft known as fraudulent chargebacks. For businesses already struggling with inflation and changes to debit and credit card surcharges, this new type of fraud is taking a toll. Business reporter Adelaide Miller reports.
Adelaide Miller : Bronte Goodieson didn’t know what a chargeback was until hundreds of dollars were taken out of her account. The local artist from Sydney had sent off three paintings to an online customer in July last year when she got an email flagging a problem with the order.
Bronte Goodieson: It was like the Sunday afternoon, I was just on a walk and I was checking my emails and it was like $460 is going back to this customer. So I like checked it, I was like yeah the post number’s there, I packed it and they haven’t emailed me.
Adelaide Miller : She is one of the many…
CLICK HERE to read the FULL Chargeback 'fraud' crippling businesses – ABC listen article.
Investment fraud targets the human desire for financial growth by promising high returns with “low to no risk.”
- Ponzi Schemes: Named after Charles Ponzi, these schemes pay “returns” to earlier investors using the capital brought in by newer investors. There is no actual underlying business; the system collapses when new recruitment slows down.
- Pyramid Schemes: Similar to Ponzi schemes, but participants are usually required to sell a product or service. The primary “profit” comes from the recruitment fees of new members rather than actual product sales.
- Pump and Dump: Fraudsters spread false, positive rumors about a cheap stock (the “pump”) to drive up the price. Once the price peaks, they sell their shares (the “dump”), leaving other investors with worthless stock.