Fraud in practice: A real-life example
Sam owns a catering company and received an order valued at $5,000 over the phone to supply food at a wedding. The customer asked if she could pay Sam $10,000 as the customer needed to pay $5,000 to the florist but was having trouble with their internet banking. Sam agreed and the customer paid $10,000 over the phone using a credit card and provided a BSB and account number to transfer the $5,000 to the florist.
A couple of weeks later Sam received a chargeback for the $10,000 transaction as the credit card details were stolen. Sam was immediately debited for the $10,000 transaction and also liable for a chargeback fee. Sam also experienced a $5,000 loss as the funds transferred to the florist could not be recovered.