Single mom warns fellow small business owners after discovering scam on Facebook: ‘This impacts us massively'
Emma Diedrichs is the founder of LuxeLittleOne, a small business selling diaper bags and backpacks for parents.
Advertisement
The Brisbane mom first got the idea for the business a few months after she had her son.
She was tired of juggling clunky baby bags and wanted to create something that was stylish but also functional.
The 30-year-old launched LuxeLittleOne over 18 months ago and, since then, has poured her 'blood, sweat and tears' into the business.
Advertisement
'We have grown exponentially and now have our own warehouse and work for myself full time,' Diedrichs told news.com.au.
She has put an incredible amount of effort into the business and has received great feedback from many happy customers, which is why she was shocked to receive her first ever chargeback in February of this year.
A chargeback is when a customer disputes a debit or credit card transaction and the card issuer must determine whether to provide the cardholder with a refund for the transaction amount.
4 Australian small business owner Emma Diedrichs shared how a customer applied for a false chargeback — only to later resell her merchandise on Facebook.
TikTok/@luxelittleone
Advertisement
Chargebacks can occur when the products or services received are not as described, they did not receive them within the stipulated time frame or they were not received at all.
Other situations where a person may submit a chargeback is cases where the card is used fraudulently or when there is an error in the billing process.
When Diedrichs received the notification for the chargeback she didn't know what to do as this is not something she had experienced in her business before.
'Chargebacks just don't happen with us. We are not fraudulent, we send everything out correctly. If something is wrong someone will just email us or contact us through social media,' she said in a recent TikTok video.
Advertisement
4 Diedrichs sells diaper bags and backpacks for parents at her company LuxeLittleOne.
TikTok/@luxelittleone
The customer in question had purchased two baby bags, totaling almost $162, with the 30-year-old saying she remembered packing this order as it was unusual for customers to purchase more than one bag at a time.
The business owner looked further into the situation and found the items had been confirmed as delivered by Australia Post and the customer had made no attempt to contact the company prior to submitting the chargeback.
Diedrichs uploaded the documents showing the items had been sent and delivered but, despite this, the bank decided to side with the customer.
This meant that, on top of losing the sale, the business was hit with a $16 fee.
@luxelittleone
You have until 8pm tomorrow night to snap these babies up! 🤟 ♬ original sound – LuxeLittleOne
'It's so disheartening for me. I am a single mom, this is my livelihood. Some people probably think that this is just a company that ships out and don't care. I literally do a happy dance every time I get an order,' she said in the video, which she shared on her business page.
Diedrichs was then hit with another blow just two weeks ago when she was scrolling on Facebook Marketplace and found a post from the same customer selling the two bags for which she had received the refund.
Advertisement
'X2 LittleLuxeOne baby bags. One pink and grey, the other grey and black. Only used for a few months. Near new condition with no wear and tear,' the ad read.
'Currently on sale for $78 for one. RRP $156 each.'
4 Diedrichs discovered that a customer was selling her bags on Facebook Marketplace after getting a full refund.
Mariakray – stock.adobe.com
The discovery left her furious.
Advertisement
'This is so frustrating for me. I work so hard in this business. This is my full-time job. This puts food on the table for myself of my son. I am working day in day out to provide for my family,' Diedrichs said.
'This is my income. You wouldn't go to somebody's workplace and take $162 off them.
'Please don't. It just hurts.'
Speaking to news.com.au, the owner confirmed that, since making the Facebook discovery, she was taking the matter further.
Advertisement
4 Diedrichs' business was hit with a fee from the bank after the chargeback in addition to losing the merchandise.
TikTok/@luxelittleone
She said that, as the business grows, she understood that issues like this are 'bound to happen', but she was still incredibly 'disappointed' as things like this impact her livelihood.
'This impacts us massively. Not only has she got the products, we had to refund $162 and cop a $16 chargeback fee,' Diedrichs said.
Since sharing the situation on social media, the young mom has received a huge amount of support from her followers, with people furious at the situation.
Advertisement
'This is such a horrible thing for someone to do,' one person wrote.
'That's so disappointing. I hope she sees this and feels awful,' another said.
Other business owners chimed in claiming they had experienced similar issues.
'We have had to deal with a small handful of these, unfortunately one customer did it for 3 massive orders for us. We had evidence to the moon and back and still wasn't enough,' one small business owner wrote.
Another person claimed they had sent proof of delivery and photos of the customer wearing the items they did the chargeback for, and yet the decision was still not reversed.
'$520ish worth of stock and three orders and the bank rejected our response and continued on with the chargeback. It's an absolute joke,' they wrote.
Australian Retailers Association CEO Paul Zahra previously told SmartCompany that, while many chargebacks are legitimate, chargeback fraud is still a concern for many businesses.
'Chargebacks protect consumers from fraudulent transactions and help maintain trust in online shopping. They also encourage businesses to maintain high standards of service and product quality,' Zahra said.
'However, for businesses, chargebacks can be costly not only in terms of direct financial losses but also in administrative burdens. Disputing chargebacks often requires time and resources that small businesses might not have.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Engadget
39 minutes ago
- Engadget
AI browsers may be the best thing that ever happened to scammers
We've heard a lot this year about AI enabling new scams, from celebrity deepfakes on Facebook to hackers impersonating government officials . However, a new report suggests that AI also poses a fraud risk from the other direction — easily falling for scams that human users are much more likely to catch. The report, titled "Scamlexity," comes from a cybersecurity startup called Guardio, which produces a browser extension designed to catch scams in real time. Its findings are concerned with so-called "agentic AI" browsers like Opera Neon , which browse the internet for you and come back with results. Agentic AI claims to be able to work on complex tasks, like building a website or planning a trip, while users kick back. There's a huge problem here from a security perspective: while humans are not always great at sorting fraud from reality, AI is even worse. A seemingly simple task like summarizing your emails or buying you something online comes with myriad opportunities to slip up. Lacking common sense, agentic AI may be prone to bumbling into obvious traps. The researchers at Guardio tested this hypothesis using Perplexity's Comet AI browser , currently the only widely available agentic browser. Using a different AI, they spun up a fake website pretending to be Walmart, then navigated to it and told Comet to buy them an Apple Watch. Ignoring several clues that the site wasn't legit, including an obviously wonky logo and URL, Comet completed the purchase, handing over financial details in the process. In another test, the study authors sent themselves an email pretending to be from Wells Fargo, containing a real phishing URL. Comet opened the link without raising any alarms and blithely dumped a bank username and password into the phishing site. A third test proved Comet susceptible to a prompt injection scam, in which a text box concealed in a phishing page ordered the AI to download a file. It's just one set of tests, but the implications are sobering. Not only are agentic AI browsers susceptible to new types of scam, they may also be uniquely vulnerable to the oldest scams in the book. AI is built to do whatever its prompter wants, so if a human user doesn't notice the signs of a scam the first time they look, the AI won't serve as a guardrail. This warning comes as every leader in the field bets big on agentic AI. Microsoft is adding Copilot to Edge , OpenAI debuted its Operator tool in January , and Google's Project Mariner has been in the works since last year. If developers don't start building better scam detection into their browsers, agentic AI risks becoming a massive blind spot at best — and a new attack vector at worst.
Business Insider
2 hours ago
- Business Insider
TikTok Shop is making advertisers give AI more control — whether they like it or not
TikTok is done nudging its e-commerce advertisers toward AI — it's now pulling them headfirst into a future in which algorithms, not marketers, call the shots. The platform's guidelines say that starting September 1, brands that want to pay to advertise products for sale in their TikTok Shops will have to use a tool called GMV Max, ad buyers tell Business Insider. Introduced in 2024, the TikTok tool uses an AI algorithm to decide how to get advertisers the most bang for their buck. Merchants pick products in their TikTok Shop they want to advertise, set a budget and target return on investment, and then let TikTok's algorithm take over. It decides how to spend the money — boosting existing ads or spinning up new ones — to maximize sales. The shift from TikTok's standard ads manager to GMV Max has ruffled feathers in adland, since it forces brands to relinquish some strategic control to an algorithm. It also makes it harder for brands to gauge TikTok ad performance beyond the closed ecosystem of TikTok Shop, ad buyers said. "TikTok's GMV Max is asking for us to put a lot of faith in the platform," said Dwight Bush, director of paid social at the marketing agency Doner Partners Network. TikTok's strategy echoes similar moves by Google and Meta. But TikTok's is compulsory rather than optional, and on a quick timeline. Big Tech platforms are increasingly pushing advertisers to use AI-powered tools that create ads and determine which users to target and where to place those ads. "It's the direction the whole industry is moving," said Neil Baker, head of media at the digital ad agency TUG. TikTok offers a suite of other AI tools for advertisers, including options to produce ads using AI-generated avatars. It also offers Smart+, an AI tool similar to GMV Max, which automates and generates campaigns to achieve goals like video views or website visits. Automated tools have been a boon for Big Tech platforms. Tech giants say they save time and drive performance for advertisers. Some marketers say they're black boxes that strip them of control. These algorithms don't always offer a complete picture of which ads worked and where they appeared, making it harder for marketers to use the data to guide their broader strategies. And ad agencies are also wary that automating many aspects of marketing could severely disrupt their own businesses. Five ad buyers told Business Insider that while they accept that the industry is moving in this direction, they feel the new TikTok mandate was premature since GMV Max has not yet proven itself effective for every advertiser. While the push to GMV Max has irked some big brands, it's been more warmly adopted by smaller Shop sellers, a TikTok Shop agency partner said. Direct-to-consumer brands that drive the bulk of their sales on TikTok Shop care less about off-platform tracking, and the product includes some guarantees that small sellers appreciate. For example, TikTok created a feature called "ROI Protection" within GMV Max designed to assure advertisers that their campaigns would drive results. TikTok automatically issues ad credits if the return on investment for a particular campaign falls below 90% of the target that the advertiser chose. Katy Hallam, head of client services at TikTok commerce specialist agency Onyx, said the tool has been a "game changer" for some merchants' sales and a time saver. Why the AI black box makes some big brands uneasy The ad buyers who spoke with Business Insider said that some large advertisers they work with had misgivings about TikTok Shop's forced shift. They said that TikTok had already moved the original deadline from July to September after complaints from the ad community. "Household names are more hesitant," said Jack Johnston, head of social innovation at the ad agency Tinuiti. "They have very big creative and media strategies, and they want to be able to control everything." An exec at one ad agency said TikTok granted additionalextensions to some of their clients who were unhappy about the change. Ad buyers say GMV Max lacks key insights — in areas like geography, audience, and influencer data — that marketers rely on to shape campaigns beyond TikTok. "It's very frustrating because we can't necessarily determine what is working and what isn't," Doner Partners Network's Bush said. Bush said the agency provided this feedback to TikTok, but felt it "wasn't really impactful." Another point of contention: TikTok credits all Shop purchases during a GMV Max campaign to the tool, even if the consumer never saw an ad, according to company documentation viewed by Business Insider. A TikTok spokesperson said the company offers both first- and third-party measurement solutions and partners that help advertisers measure on- and off-platform sales. They did not dispute the specific measurement complaints made by ad buyers but pointed to a page on TikTok's Business Help Center that details the metrics GMV Max provides. The page says that some metrics may not be available to all advertisers yet. TikTok Shop faces challenges in wooing big brands The GMV Max pushback is one of several obstacles TikTok Shop has faced when trying to woo larger brands, current and former TikTok employees said. While a variety of big brands have embraced the platform — including Anker, Maybelline, Philips, Garnier, and Crocs — TikTok has had an easier time pitching smaller sellers. TikTok said in June that over a third of all TikTok Shop purchases in the US each month in 2024 went to small businesses, and that 171,000 local and small businesses had opened TikTok Shops globally. One current TikTok Shop staffer said finding the right team within a big company to pitch TikTok Shop can be tough, as the platform blends social media and e-commerce functions that may fall under different divisions at a brand. Brands also sometimes complain about " dupes," or fake versions of their products, showing up in the Shop feed, one current and two former staffers said. And it can be hard to sell a big brand's team on tasks like hosting livestream sell-a-thons when the return on investment may not pan out, the staffers said.
Yahoo
2 hours ago
- Yahoo
ASX Penny Stocks Spotlight: HMC Capital And 2 More Compelling Picks
The Australian market has seen mixed performance recently, with the ASX200 stabilizing as Real Estate, Discretionary, and Utilities sectors buoyed the index despite a downturn in Materials. In this fluctuating landscape, investors are often on the lookout for stocks that can offer both value and growth potential. Penny stocks, although an older term, continue to attract attention for their ability to provide unique opportunities; these smaller or newer companies can deliver significant returns when backed by solid financials. Top 10 Penny Stocks In Australia Name Share Price Market Cap Financial Health Rating Alfabs Australia (ASX:AAL) A$0.44 A$126.1M ★★★★☆☆ EZZ Life Science Holdings (ASX:EZZ) A$2.63 A$124.07M ★★★★★★ GTN (ASX:GTN) A$0.395 A$75.31M ★★★★★★ IVE Group (ASX:IGL) A$3.08 A$474.88M ★★★★★☆ West African Resources (ASX:WAF) A$2.63 A$3B ★★★★★★ Southern Cross Electrical Engineering (ASX:SXE) A$1.98 A$523.53M ★★★★★★ Regal Partners (ASX:RPL) A$3.01 A$1.01B ★★★★★★ Bravura Solutions (ASX:BVS) A$2.22 A$995.23M ★★★★★★ Austco Healthcare (ASX:AHC) A$0.37 A$135.23M ★★★★★★ CTI Logistics (ASX:CLX) A$1.86 A$149.81M ★★★★☆☆ Click here to see the full list of 452 stocks from our ASX Penny Stocks screener. Let's explore several standout options from the results in the screener. HMC Capital Simply Wall St Financial Health Rating: ★★★★★★ Overview: HMC Capital Limited, along with its subsidiaries, owns and manages real estate-focused funds in Australia and has a market capitalization of A$1.59 billion. Operations: HMC Capital's revenue is derived from four main segments: Digital (A$84.1 million), Real Estate (A$79.8 million), Private Credit (A$42 million), and Private Equity (A$28.3 million). Market Cap: A$1.59B HMC Capital has demonstrated significant earnings growth, reporting A$234.2 million in sales for the fiscal year ending June 30, 2025, up from A$93.2 million the previous year. Despite a low return on equity of 14.1%, the company's debt is well covered by operating cash flow and its short-term assets exceed both short and long-term liabilities. The recent acquisition of Neoen's renewable energy assets presents potential divestment opportunities but also challenges with financing and tax implications. Trading below estimated fair value, HMC offers potential upside amidst ongoing strategic discussions to optimize its Energy Transition portfolio. Dive into the specifics of HMC Capital here with our thorough balance sheet health report. Gain insights into HMC Capital's future direction by reviewing our growth report. IVE Group Simply Wall St Financial Health Rating: ★★★★★☆ Overview: IVE Group Limited operates in the marketing sector in Australia and has a market capitalization of A$474.88 million. Operations: The company's revenue is primarily derived from its advertising segment, which generated A$975.43 million. Market Cap: A$474.88M IVE Group's financial health presents a mixed picture for investors interested in penny stocks. While the company has experienced substantial earnings growth of 179.7% over the past year, its net debt to equity ratio remains high at 56%, suggesting significant leverage. However, interest payments are well covered by EBIT, and operating cash flow adequately covers debt obligations. Despite an unstable dividend history, IVE is trading at a good value below estimated fair value and shows stable weekly volatility of 3%. The management team and board are seasoned with average tenures exceeding nine years, adding stability to operations. Click to explore a detailed breakdown of our findings in IVE Group's financial health report. Examine IVE Group's earnings growth report to understand how analysts expect it to perform. Service Stream Simply Wall St Financial Health Rating: ★★★★★★ Overview: Service Stream Limited operates in Australia, focusing on the design, construction, operation, and maintenance of infrastructure networks within the telecommunications, utilities, and transport sectors with a market cap of A$1.33 billion. Operations: No revenue segments have been reported for Service Stream Limited. Market Cap: A$1.33B Service Stream Limited's financial profile offers a compelling case for penny stock investors. The company has achieved significant earnings growth of 83.3% over the past year, surpassing industry averages, and its net profit margin improved to 2.5%. With no debt on its balance sheet and short-term assets comfortably covering both short-term and long-term liabilities, Service Stream demonstrates strong financial health. Trading at 36.4% below estimated fair value further enhances its appeal as an undervalued opportunity. While the board lacks experience with an average tenure of 2.8 years, the seasoned management team provides operational stability. Take a closer look at Service Stream's potential here in our financial health report. Learn about Service Stream's future growth trajectory here. Make It Happen Reveal the 452 hidden gems among our ASX Penny Stocks screener with a single click here. Ready To Venture Into Other Investment Styles? Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ASX:HMC ASX:IGL and ASX:SSM. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
