Forfar suffered late frustration on Saturday as Alloa netted twice in the closing stages to steal the League One points.
Loons boss Gary Bollan said: “This was a massive disappointment for us. We were not under any great pressure but the disappointing thing for us that with two minutes to go we did not see the game out.
“To disintegrate in the way that we did is a massive disappointment for us.”
Marc Scott was causing the Alloa defence early trouble and in the 11th minute he beat two defenders but his well-struck shot went just over the bar.
Six minutes later he again came close when his goal-bound shot was cleared off the line by Andy Graham.
Forfar got the goal their play deserved in the 51st minute when from a clearance by keeper Marc McCallum, Osman See collected the ball midway into the Alloa half, ran at the defence and from close range slotted home.
The Wasps equalised in the 86th minute when Kevin Cawley fired home from close range and grabbed the points in the fourth minute of added time through Kris Renton.
Forfar scorer See said: “Our overall performance showed that we were the better side on the day but some individual mistakes cost us the points.
“We competed well today and over the past few weeks .
“I have been getting chances and hopefully will get more goals.”