Restaurant owners are being warned of a scam being carried out across the country, which has left one Christchurch restaurant owner red-faced and $3,800 out of pocket.
Scammers will send an email to restaurants, cafés and catering companies requesting a large amount of food for a function, paying with a stolen credit card and asking restaurants to charge a higher value to the credit card than what the food actually costs. They then ask the victim to transfer the difference to a courier or party planner, giving their own account.
The owner of one restaurant in Christchurch, who did not want to be named, had been left $3800 out of pocket after falling for the scam. She received an email from a man claiming to be Tony Knight who wanted his wedding catered. He asked her to take $5700 from his credit card and transfer $3800 to his ‘wedding planner’, saying that the restaurant could keep $200 as a tip. The owner had no idea it was a scam until Knight failed to show up for the food on December 18.
“Thinking back now it was really stupid and silly.”
Ben van Wijk, manager of Christchurch’s The Monday Room, also received the email but recognised the scam. They continued correspondence to find out more information. ‘Knight’ repeatedly made up reasons why he could not speak on the phone or meet in person, including saying that he was hearing-impaired or was about to go into hospital for an operation.
This form of scam is nothing new. The Australian Competition & Consumer Commission (ACCC) first reported on a similar scam in May 2009, seeing it as a variation on the cheque overpayment scheme. At the height of the Global Financial Crisis, scammers were taking advantage of desperate business owners by offering the chance of a lucrative order.
“Unfortunately, any money the merchant sent to a third party is not recoverable,” said BNZ financial crime manager Serena McFarlane. “If a customer asks you to pay for the party planner, the dressmaker, the celebrant, the musicians – that should ring alarm bells even if an invoice is provided. It is up to the customer to pay their own providers.”
Netsafe chief executive Martin Cocker said that as online payments are becoming more common, the opportunity for scammers is increasing all the time. However, he acknowledged the efforts of banks to stop scams before they happened.
“They do cop the cost of a lot of online fraud back into their business so they've got a real incentive to combat online fraud,” he explained.
If you think you’ve been scammed, MBIE recommends that you stop all contact with the scammer. If you have given over your financial details, call your bank immediately. Report the scam Netsafe (0508 NETSAFE).
“Telling your friends and family about the scam is one of the best ways to take action,” MBIE advises. “It can be hard, but sharing your story is worthwhile because scammers rely on people being secretive. Every person you talk to will be better prepared to avoid scams in the future.”
