GREENSBORO, N.C. (WGHP) — Scams targeting restaurants are leaving owners with more than a loss of income. It’s called the refund request scam.
The refund request scam is when someone pays for something using a credit card or virtual currency and then disputes the charge later after they have used the services.
Local owner and private chef of Gourmet 21 Scotty Bond is the latest victim of this crime.
Bond said the dinner for eight happened in March when he provided a full course dinner for a private birthday party.
Weeks after the event, Bond said he noticed a full refund of $1,000 taken from his account. After trying to address any problems the customer may have had, he just gave up.
In total, Bond said with product, travel and the cost of the dinner, he lost $1,500 from his own money to feed the guest.
Bond said he tried to dispute the refund and find another way to cater to the customer. After the back and forth, he just gave in.
Bond said he wants to warn other small business owners in the area of the potential scams that may arise.
John Flynn is an associate professor of law and director of Elon Law Small Business and Entrepreneurship Clinic and the Elon Law Center for Entrepreneurship.
Flynn directs a Free Small Business & Entrepreneurship Clinic at the Elon Law Center. He said businesses need to protect themselves. One way is by having a Limited Liability Company or a corporation.
The clinic is a law office that provides business-related legal services to entrepreneurs and small business owners who could not otherwise afford legal representation.
Those interested in services from Elon Law’s Small Business & Entrepreneurship Clinic should contact email@example.com.