B.C. Restaurant Workers Report Missing Millions in Digital Wallet Tips
In British Columbia, restaurant workers are facing significant issues as millions of dollars in digital wallet tips are reported missing. This alarming situation has prompted an investigation by local police and the Bank of Canada, following numerous complaints from restaurant owners.
Key Events Surrounding Missing Digital Wallet Tips
Over the last 48 hours, Ian Tostenson, the president of the British Columbia Restaurant and Foodservices Association, has received frantic calls from at least 50 restaurants. Most of these complaints originate from B.C., while a few come from Alberta. Tostenson estimates that the financial losses could total in the multimillions.
He stated, “I believe it’s likely a nationwide issue,” suggesting that many more establishments may be affected. The service involved, provided by Everyday Payments, was intended to streamline the distribution of gratuities to restaurant staff, but reports indicate a troubling trend.
Impact on the Restaurant Industry
The disappearance of these funds is proving devastating for the restaurant sector. Tostenson highlighted that some establishments have resorted to borrowing money to cover owed gratuities to their workers. This situation underscores the importance of financial reliability within the industry.
Investigation Details
- Investigating Bodies: The Bank of Canada and B.C. RCMP are involved in the inquiry.
- Service Provider: Everyday Payments, a subsidiary of Everyday People Financial Corp. and XTM Inc., manages the digital payment system.
- Financial Warnings: XTM reported a substantial accumulated deficit of $71.4 million in December.
The Bank of Canada’s spokesperson, Akim Thibouthot, acknowledged the ongoing investigation into the matter. He stated that the bank has measures to enhance compliance from payment service providers and is aware of the pressing concerns regarding user funds safety.
Next Steps and Community Impact
As the investigation progresses, at least one report of missing funds has been documented with the Whistler RCMP. Staff Sergeant Kris Clark confirmed that the investigation remains active, although no further details are currently available.
The fallout from this incident continues to unfold, leaving many in the restaurant community anxious about their financial futures. The industry calls for transparency and reassurance that funds meant for employee gratuities will be safeguarded.
