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Barcode Scam Redux - Target's $4.99 iPod 1014

abscondment writes "Nearly a year ago, two couples were charged with scamming WalMart for nearly $1.5 Million by creating custom barcodes with reduced prices. You'd think that in the intervening months, other companies would guard against such shenanigans - but today we see that Target just caught a scammer buying iPods for $4.99! The 19 year old used BarCode Magic to create fake barcodes, buying expensive electronics suspiciously low prices. Personally, I would have gone for a less blatant discount, or refrained from visiting the same store so soon afterwards."
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Barcode Scam Redux - Target's $4.99 iPod

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  • by jmp_nyc ( 895404 ) * on Sunday December 04, 2005 @09:30PM (#14181404)
    Of course, we only hear about the ones stupid enough to get caught. I wonder what percentage of people attempting barcode scams aren't caught (or publicized, to save the store embarrassment). Similarly, I wonder if stories like this increase or reduce the number of people trying these scams...
    -JMP
  • similar story (Score:2, Interesting)

    by jollyroger1210 ( 933226 ) <jollyroger1210@nOSPAm.gmail.com> on Sunday December 04, 2005 @09:33PM (#14181422) Homepage Journal
    A few weeks ago someone screwed up at a gas station and the Premium gas was $.239 instead of $2.39. This was an attendants fault.
  • Re:Haha hilarious (Score:3, Interesting)

    by fiddlesticks ( 457600 ) on Sunday December 04, 2005 @09:37PM (#14181443) Homepage
    why are slashdotters so obsessed with prison rape?
  • by Scruffeh ( 867141 ) on Sunday December 04, 2005 @09:37PM (#14181447)
    The most laughable thing has got to be that the kid is pleading ignorance to the severity of his actions. Anyone with half a brain is going to realise that undercutting retailers by 100s of dollers is blatently stealing. To be honest though, I guess you have to be pretty daft to keep going back to the same place. 'I'm just a kid', give over, you're 19 son, grow up and accept your punishment!
  • The real thieves... (Score:5, Interesting)

    by dada21 ( 163177 ) * <adam.dada@gmail.com> on Sunday December 04, 2005 @09:45PM (#14181473) Homepage Journal
    ...are usually the employees.

    I knew a kid who worked at a Best Buy with a bunch of his friends. They all were caught months later running a register scam. They'd ring up a friend who bought maybe 6 CDs, a VCR and a TV. They'd "forget" to scan the TV, and the friend would roll right out with the helper employee (another scammer) and put the TV in a car. They did this for months and finally got caught.

    Another scammer I met (who didn't do jail time) used to be in charge of returns. He would check returns for completeness, put it back together, reshrink wrap the item and stick it back on the floor. Oh, he also threw other expensive items in the box. His friend would come, buy the $19.99 big box radio, and walk out with hundreds of items. Since the item was shrink wrapped, no one caught on for months.

    I thought of the barcode scan YEARS ago when I found a barcode scanner at a garage sale. This is pre-USB days. I messed with barcodes for weeks, and figured one could print barcodes onto a label and stick it on a box. I never did it (even though I am an anarchocapitalist and anti-government/anti-mercantilism, I would never steal), but I can't believe it took this long for stores to see the problem.

    The solution is one-time use barcodes. It isn't as bad as you'd think for the big box stores. When a skid is received, it has two barcodes on the packing list: first code, last code. The employee scans both (say 1111183.17 and 1111183.234) and the system registers all the item codes and the unique codes. If the register scans a duplicate, there's a problem.

    The other solution is already in place in Home Depot and grocery stores -- the self checkout. You can't buy an item without weighing it. I believe Best Buy and Circuit City are already starting to work on incorporating scale barcode scanners that weigh the item when they scan it.

    I've considered starting a security company for ma-and-pa stores to battle these forms of theft. There are many ways a store can protect itself, but the best way is to have intelligent staff who aren't helping the thieves. Good luck there.
  • Perhaps you've never worked at such a fine retail establishment as Target, but as someone who has I will tell you that the cashier was most likely not stupid, he just simply didn't care. He doesn't get a bonus for catching theives like the guy with the $4.99 iPod, and after ringing up thousands for purchases for hours on end, day after day, he probably just got tired and didn't really notice the iPod ringing up cheap. Personally I never paid attention to what items were being purchased or what the computer said they cost. I just ran them over the scanner and gave change like the cash register told me to.

    That being said, if this guy had any brains, he would have gone to a different store. At the end of the day, inventory gets taken and if items sold don't match up to cash in registers, there's a problem. His scheme could have (not definately, but there is a chance) been discovered, and then it would have been a simple matter of looking at the security tapes and seeing who the offender is. We had a similar incidence like this at our store when a woman rode a $500 bike out of the store while the security guard was one lunch brake (yeah, great security practices there huh?). We pulled the tapes and saw who it was, and sure enough, the same woman comes in a week later trying to shoplift stuff by putting it in her backpack. She was arrested in short order and we got the bike back soon enough too.

    Just goes to show people don't become criminals because they're smart.
  • now im tempted (Score:2, Interesting)

    by coolraul ( 936086 ) on Sunday December 04, 2005 @09:47PM (#14181487)
    to make my barcode with something that would ring up $100,000, just for kicks
  • by nmb3000 ( 741169 ) on Sunday December 04, 2005 @09:59PM (#14181564) Journal
    It might not be quite as fancy, but there's a free and OSS PHP-based barcode maker called Barcode (which does work, and pretty well). I've used it in the past to steal^Wcreate barcodes for inventory at work.

    Here's an implementation [barcodesinc.com] and here's the homepage [mribti.com] for the program.

    An interesting aside is that if you have an LCD monitor, you can actually scan the barcode off the screen (at least with an older Symbol RS232 scanner I had).
  • Re:Class 5 felony (Score:5, Interesting)

    by vishbar ( 862440 ) on Sunday December 04, 2005 @09:59PM (#14181568)
    From TFA:

    He faces a felony count of forgery and two misdemeanor counts of theft.

    I find it interesting that forgery was the charge that carries the greatest clout. Looks like he would have been better off if he just stuck the iPod under his jacket. It almost seems like he's being punished more for subverting the store's security system than for the actual theft of the property. Is it normal to charge a bar-code switcher with forgery? In the lego case [slashdot.org] it seems as if he was charged with theft rather than forgery.

    Either way, you're right...he's going to have a tough time finding a job after college with this on his record...

  • by Sigmund Dali ( 925077 ) on Sunday December 04, 2005 @10:00PM (#14181578)
    I worked at Fry's, and was actually lucky enough to catch somebody doing this trick. I say lucky because, besides for other draconian security measures in place at Fry's is a $50 bonus for catching someone shoplifting ($300 if it was an employee). Anyway, these scams are particularly clever because it requires very little in the form of "suspicious behavior" from the customer. All they have to do is put the package in the cart with the barcode up and casually place the sticker on it. Furthermore, since you can pretty much generate whatever you want on that, it can be difficult for the cashier to notice it, because the product could ring up as an item very similiar. For instance, the trick goes to purchase an iPod case for $10 and then take home the barcode and fiddle with it until you make a sticker with the same info on it. It rings up to the cashier as "iPod" something, and it takes a rather observant cashier to notice this. Very clever, indeed.

    The only reason I caught him was because I noticed he kept peeling something off of the box, which was suspicious. Apparently, he had f'ed up the first sticker's application, and it was crooked, a dead giveaway.
  • Re:From the article: (Score:2, Interesting)

    by syousef ( 465911 ) on Sunday December 04, 2005 @10:07PM (#14181621) Journal
    Only a kid? 19 is not a child. Only a twit more like.
  • by beefypirate ( 916189 ) on Sunday December 04, 2005 @10:08PM (#14181629)
    I used to work at Menards (For those of you not in Wisconsin, it's basically like Home Depot) and I had someone come through my register with a huge table saw and they had put a sticker from a $0.99 candle over the code I had to scan. I called him on it and turns out he didn't want the saw after all. We even had a special training tape devoted to this. Stores are obviously aware this kind of thing happens, so having a lawsuit like this is good publicity for them, I think.
  • by Jeff DeMaagd ( 2015 ) on Sunday December 04, 2005 @10:11PM (#14181653) Homepage Journal
    I think the self checkouts cause more problems than they solve. Some of the ones I've used were horribly slow, some were misaligned such that the bar code would only read at a specific height *above* the glass. Some were simply erratic or otherwise failure prone.

    On average, the systems were twice to four times as slow as using a cashier and still required one or two people watching four machines, nullifying the cost, time and labor savings. Or I could choose the *one* open cash register that has a long line, though that one line seemed to be moving about as many customers and items as four of the self-checout units. No thanks. I tend to avoid Home Depot because of those pieces of trash. Thankfully, my local Lowe's haven't installed them.
  • by mariox19 ( 632969 ) on Sunday December 04, 2005 @10:13PM (#14181664)

    You're right about the clerk just not caring. And I'm sure you'll agree that it's Target's fault.

    About eight years ago I was with a friend when she bought a $2,800 Macintosh from CompUSA for $1,400. Somehow, the computer running pricing had gotten misprogrammed, and as a result, all Macintosh models -- from the lowly entry-level desktop, to the top-of-the-line tower model -- were given the same sale price.

    I was with my friend helping her pick out a computer. She was going to get the entry-level model, but on a whim asked how much the tower was selling for. When the clerk told us, I asked him to double check, because I knew that towers (at the time) started at $1,900. As we both bent down to check the SKU, I saw that this was the top-of-the-line model. He confirmed that it was selling for $1,300. I recommended to my friend that she purchase it.

    If this were a mom and pop shop, I would have put a stop to the problem right then and there. But, you know what? I figured this is the cost of doing business the way these big shops do it. They hire kids, pay them peanuts, give them little or no training, and basically tell them, "Don't think! Just do what the computer tells you to do." If that's how you put together your sales force, then you'll have to eat these losses when they come along.

    The sick thing is, the accountants at CompUSA probably had it all figured out -- staff compensation versus shrinkage -- and decided they'd make more money this way.

    I'm not advocating stealing, but I shed no tears for these stores when their employees pay so little attention.

  • Re:From the article: (Score:2, Interesting)

    by mkhan8037 ( 891588 ) on Sunday December 04, 2005 @10:14PM (#14181670)
    I used to work at a department store and caught many people trying to buy items with switched barcodes. Having worked there a while, I could usually spot an incorrect price, however around christmas time there were tons of new employees at the checkout and I'm sure people got away with it all the time. We found peeled off barcodes and empty packaging everyday.
  • Not at Target! (Score:5, Interesting)

    by Fjornir ( 516960 ) on Sunday December 04, 2005 @10:22PM (#14181708)
    Personally, I would have gone for a less blatant discount, or refrained from visiting the same store so soon afterwards.

    Personally I wouldn't try this at Target at all, mostly because I've seen how the Loss Prevention staff at Target work. My father worked for Target in Loss Prevention and as a company they take it very seriously. I got a chance to go into the security booth and see how it works at Target and... Wow. I went in and looked at all the monitors and said "That's a lot of cameras..." and the guy who was in there laughed and said, "no... This is a lot of cameras" -- and put the entire left-bank of monitors (the control room is rigged for two operators) on sequential scan.

    Excepting the interiors of the dressing rooms and restrooms the whole store is pretty much perfectly covered. This was back in '94 when I was in there and my dad was showing me just how cool their shiz was. They had a system which would track a person through the store, switching the monitor from camera to camera to keep them covered. It wasn't perfect, you needed to get them so they were the only moving object in the frame and if they encountered a other people it would pop up the camera numbers for the areas they could go to from there around the borders of the screen. It was confusing to watch because as it shifted from camera to camera 'left' would become 'right' or 'up' but...

    The cashiers are watched like -- every cashier has a camera on them, and every scan they make pops up the item number and price. When a card is swiped the card number pops up too. If the same card is used within a given period of time it automatically pops up onto the "suspicious activity" monitor.

    The detail view on cashiers was really quite interesting - a series of bar graphs showed how high above/below the averages they were for credit vs cash , store credit vs external credit, dollar amount of sale, and several other indicators. My dad was telling me that because real shoplifting was relatively low cost compared to a clerk participating in a scam they put a lot more effort into finding the crooked clerks.

  • by toddbu ( 748790 ) on Sunday December 04, 2005 @10:22PM (#14181712)
    I don't know whether people are more broke or just more inclined to try it since cashiers just scan everything through absent-mindedly.

    I don't know about record stores, but at most places I shop it seems that the cashiers know nothing about the products that they sell, so how would you expect them to know anything about the right price?

    While we're talking about lack of product knowledge, let me say that I get kind of tired of asking for help at a store only to be told that I should read the box. I shop online more now because I can actually get the information I need about the product. I've also been known to stand in a store and call the 800 number on the box to ask the manufacturer questions. It's really quite sad.

  • by moosesocks ( 264553 ) on Sunday December 04, 2005 @10:27PM (#14181744) Homepage
    Agreed!

    My *deli* has unique UPC codes on each sandwich it sells. It's not that hard to implement if you've got the drive to do it. The system easily pays for itself in the increased efficency of the store, and probably helps reduce theft -- you can't pick up your sandiwch until you've paid.

    You place your order on a touchscreen kiosk, get a receipt with the UPC printed on it, shop around for your other items, check out and pay, get the receipt stamped PAID, and then pick up your sandwich.
  • by v1 ( 525388 ) on Sunday December 04, 2005 @10:30PM (#14181757) Homepage Journal
    At the end of the day, inventory gets taken and if items sold don't match up to cash in registers, there's a problem. His scheme could have (not definately, but there is a chance) been discovered, and then it would have been a simple matter of looking at the security tapes and seeing who the offender is.

    Working at a small retail shop, I'd have to disagree with that. Even being a small store with a small showroom, we do not do inventory more than once every 2 weeks - usually once a month. I can't imagine a large department store doing inventory any more than once a week, probably pulling inventory on like a few isles per evening. Inventory descrepencies of single missing items can go undiscovered for days or weeks. Week-old security tapes are not very helpful if the thief has an IQ above room temperature and doesn't make a daily habit of filching at the same store.

    There's no good excuse for the cashiers. They deal with those products day in and day out. Particularly for stores like Target and K-Mart, many customers come in for only a handful of items, or a single item. Checkers with any experience should know that ringing up a basket of items that includes an iPod, totaling under $100 means something is wrong. I could see if the thief shaved say 10 or 20% off the price it could slip by most of the time, but cutting 95% off the price should ring a bell somewhere. If an employee cares that little for the benefit of the business that cuts their paycheck each week, they do not deserve to keep their job after letting something like that slip by. Letting something like a $4.99 iPod slip by indicates either indifference or gross neglegence, neither of which you want on your staff.
  • Re:similar story (Score:3, Interesting)

    by meowsqueak ( 599208 ) on Sunday December 04, 2005 @10:35PM (#14181786)
    The price was obviously wrong ($0.14 rather than $1.40 or somesuch) and some people had obviously come back several times in the space of a few hours to take advantage of the mistake, which is illegal. I just located the story on www.nzherald.co.nz - unfortunately, to view the story requires a paid subscription :(

    Ah, here's the story on a very unlikely site. There was a follow up a few days later outlining Police action but I can't find that archived anywhere.

    http://www.int.iol.co.za/index.php?set_id=1&click_ id=29&art_id=qw1131010201202B252 [iol.co.za]

    November 03 2005 at 04:22AM

    Wellington - A New Zealand oil company appealed on Thursday to 50 motorists who bought petrol at a give-away price after a worker put a decimal point in the wrong place on a self-service pump to come forward and pay the full amount.

    The Challenge service station at Riwaka, near the South Island city of Nelson, sold petrol at 14,9 New Zealand cents (about 70 cents) a litre for two days in October when an employee set the wrong price on an automatic dispenser which took electronic payment cards.

    Challenge placed an advertisement in the Nelson Evening Mail on Thursday asking drivers who benefited to come forward and pay the additional NZ$1,34 a litre they should have paid.

    "We're upset, really," the station's owner Jeff Roger told the paper.

    'We're upset, really'
    "Some people have got the fuel and just come back several times knowing the machine is wrong."

    He said drivers had until Saturday to pay up before their electronic account details were given to the police, who said they could face theft charges because they knew they could not legally fill their tanks for about NZ$7. - Sapa-dpa

  • Re:Class 5 felony (Score:3, Interesting)

    by CastrTroy ( 595695 ) on Sunday December 04, 2005 @10:37PM (#14181798)
    I saw a young girl getting a speaking to by a local transit cop about her fake transit pass. Apparently that can be counted as forgery too. He just fined her under local bylaws, which ends up being a pretty hefty fine, way more than hte bus pass. Anyway, not sure if he was just trying to scare her, or whether he was telling the truth, But I think forgery of almost anything can be counted as forgery. Anyway, it probably wasn't worth their time to go through a whole trial and all. She looked plenty scared enough just getting the fine.
  • Back in my day... (Score:5, Interesting)

    by Spock the Baptist ( 455355 ) on Sunday December 04, 2005 @10:45PM (#14181842) Journal
    Back in the late 70s, or early 80s the Skaggs-Albertson's in Waco carried fishing gear. Being a bass fishing type of guy, I frequented the 'Fishing Department" often. One afternoon I discovered that the store had got several Fenwick rods in. A couple of the spinning rods were models that I had been fantasying about for a year or so.

    I was shocked when I saw the prices. They were about 1/4 of SRP. You did not get Fenwick rods back then for less than SRP. There were also 4 Plano tackle boxes that I had been admiring in the BassPro catalogue for a couple of years. They too were 1/4 of SRP. A couple of my buddies were with me, and the three of us scrapped to gather enough case on the spot to purchase these items.

    I never have found out what the deal was, whether these items were mismarked, or if there was some skullduggery afoot. In any case I've still got both rods though I don't use them so much anymore. I gave the tackle boxes to one of my nephews, and he's still using them.

    Frank, one of the above mention friends has always believed that we blinded-sided some tag switcher. His dad was a lawyer and there were some group of people about that time where one person would go into stores and switch tags one day and another would come back a couple of days later and purchase the items. Almost all of the suspected switches were to items that the average store employe would not know about, so the prices that the items were switched to did not draw suspicion. No one was ever arrested, and I don't believe that there was really anyone that was strongly suspected. The only clue that this might have been going on was the some of the store managers were finding items that were 'mismarked' with unusually high frequency. The suspicion was that if the second person got even a little nervous that things were not going well they'd never make the purchase.

    I'm, personally, not so sure that this was the case. About 7 months after I purchased the rods and tackle boxes, fishing gear other than hooks, weights, line, and lures disappeared from the store. I'm thinking that the rods and tackle boxes were discounted to get them out of the store. Who knows???
  • by Anonymous Coward on Sunday December 04, 2005 @10:46PM (#14181846)
    That's nothing for an inside job. I knew friends of some friends that worked the dock at Best Buy or similar store. Basically they had a camera watching the dock but they could point it away and they hooked up with some of the drivers that made deliveries to that store regularly. They'd unload merchandise out of the truck and straight in to the trunks of cars, with the drivers helping. After a while they found that one of the openings where the trucks pull up couldn't be seen by the camera so they'd just have "their drivers" pull up there and unload goods. These guys also went to CU where this target thief goes.. I wonder about that.


    They had some protocols too, they'd only take things that came in quantity. If there was a high dollar item that the store might only have 2 of then they wouldn't take it. On the other hand, they'd get deliveries of 50 sony laptops or 50 30" TVs and the BestBuy's are so screwed up with their inventory system as it is. They'd take one or 2 and then send one or 2 back like it was broken. The records would be all screwed up. This went on for like 2 years that I know of and I'm not sure they ever got caught. From what I could gather, the company was moving so much stuff, in a really fast and loose way that it might be 6 months before they'd see a couple TVs missing. This was right around the time bestbuys started opening up in Colorado and it was common for them to completely sell out of a lot of popular items, especially during the holiday season.


    I remember they were offering to sell me a home entertainment center, full surround sound, stereo, TV, VCR (again, this was about 12 years ago) the works for $150 it was probably like $3000 in goods; "just show up at this time and we'll load it in to your car." I ultimately turned them down but as a penny-less student at the end of my college years I did consider it. I'm glad I didn't do it, in retrospect.

  • by Zleeper ( 189901 ) on Sunday December 04, 2005 @10:51PM (#14181864)
    No, silly, the moral to the story is to just print all sorts of bar codes and just put it on items on the shelves and leave them there. 1 per model. Then the store will spend inordinate amount of effort to keep track of these ridiculous bar codes, and in the interim, some people will inadvertently get a "bargain" they didn't realize.
    Fun, fun, fun.
  • by rm69990 ( 885744 ) on Sunday December 04, 2005 @10:56PM (#14181892)
    Have you ever spent a day as a cashier? Trust me, when your boss says "You have to scan so many items per minute", you don't give a flying fuck what price something comes up as (most don't even take the time to look at the screen). All you care about is getting however many items over the till per minute. And when you have some cashiers doing over 100 items a minute(yes, it is possible), they don't scan *check screen*, scan *check screen*, they scan scan scan scan without looking.

    Then, take into account that these cashiers do the same thing, over and over again, endlessly. Can you honestly say that after a career where you have scanned millions of items, you still check the price on each and every one?

    But of course, it is just so easy to criticize without putting yourselves in someone else's shoes, isn't it?
  • by eyeball ( 17206 ) on Sunday December 04, 2005 @10:56PM (#14181898) Journal
    Other pranks have been committed like this without a profit motive. There have been several cases of people making bogus coupons and emailing them as chain spam. Store clerks often take them without knowing any better.

    Reminds me of a nonsense prank my wife did while driving across country. When she went though a town she'd go through a few parking lots and collect flyers from car windshields that were advertising local (non-chain) restaurants. She's save them and put them on cars a few states away.

    I love her more and more each time I think of that story.
  • by DavidTC ( 10147 ) <slas45dxsvadiv.v ... m ['box' in gap]> on Sunday December 04, 2005 @11:07PM (#14181964) Homepage
    That's a classic scam. It happened at a Walmart near the one I worked at a few years ago. Some high school kid started 'selling' some sort of game console, I think it was a Gamecube. He'd collect 50 bucks from other kids at school, and then tell them when he was working. They were to get the gamecube, put a piece of tape over the barcode, and at least 10 other items or something.

    He actually had it down to a science, but failed to consider that Walmart notices when people start 'shoplifting' two to three large boxes a week that obviously couldn't be snuck out of the store under a coat, especially one with such a high-turnover rate. At first, they thought that people were stealing them from stock, so checked they were actually getting out on the floor, which they were. Then they just had people stand around electronics and follow people who picked up Gamecubes to the checkout. (This example was mentioned during training which is why I know about it.)

    However, picking the TV and the game conses were pretty stupid. Although the TV, at least, has plausibly denability if it stays in the cart. Running things over the scanner and failing to notice when it didn't beep is harder to explain, considering that's like 90% of a cashier's job. (I say that as a cashier.;))

    If you actually want to do something like that, the trick is to pick something small that looks like a lot of other things. For example, a game in a bunch of other games. It's almost impossible to detect. (And feel free to return all the other games, unopened, the next day, to steal them later.)

    However, the shrinkwrap thing is genius. I've actually heard stories about people trying to reseal (or just seal in the first place) things, but obviously that works a great better when you operate a sealing machine. And, assuming the Besy Buy return counter works like Walmart's, people behind it say 'This is good' and stick it in a cart to get put back on the floor by other employees, so no one would could ever notice when items didn't get there.

    Yeah, I'm cynical about this, because I don't give a damn about big retail and how much people steal from them. Like I said, I used to work for Walmart, where I was incidentally, required to put in a full 40 hour week for Christmas despite being part-time. I don't steal from them, but you people feel free.

    If you don't want to 'steal' from them, do what I do...I use Walmart as an ATM. I purchase items that cost like 60 cents, and then get cash back, which costs them like $1.50 from my bank. And I get a candy bar out of it.

    Once, when I needed 40 dollars and was really bored, I went around twice. ;)

  • by Neoprofin ( 871029 ) <neoprofin AT hotmail DOT com> on Sunday December 04, 2005 @11:19PM (#14182041)
    Generally the wages employees are paid are based on competitive wages for that area, so as much as I hate Wal-Mart I must disagree with the misconception that all of their workers are getting screwed hard. When I worked at Target working in a metropolitan area I made far more than the minimum wage, and more than my aunt who started working in a small town, but it was still only average compared to everything else.
  • by JourneyExpertApe ( 906162 ) on Sunday December 04, 2005 @11:36PM (#14182136)
    They don't station security guards at the end of every aisle to prevent casual stealing, so why is this any different?

    While not at the end of every aisle, they do post guards at the entrances/exits. Or did you think the Walmart "greeters" were there just to welcome you and help you get a shopping cart? I've been asked to present my reciept when exiting both Walmart and K-mart on more than one occasion.

    The real issue here is how the cachiers are supposed to know when an item rings up less than the actual price. In this case, it was pretty obvious to anybody that is familiar with iPods and how much they cost. But how can they be expected to know if you put a fake barcode on a big TV that was $100 less than the actual price?
  • Re:Back in my day... (Score:1, Interesting)

    by Anonymous Coward on Sunday December 04, 2005 @11:37PM (#14182149)
    The week the Dungeons and Dragons Third Editions books came out, there was a giveaway deal with a computer game. I believe the game was the new version of Pool of Radiance. Buy Pool of Radiance, get a Player's Handbook with it.

    I happened to be in the neighborhood of a CompUSA (A filthy lie actually- I had to go half an hour out of my way to hit the CompUSA, but it was the only brick and mortar store in my vicinity to sell software for anything approximating a retail price) and I saw the PHB's.

    Being a poor college student, I had not yet gotten a new PHB, so I went to investigate the shelf and leaf through them. And there, I saw, every single PHB had a pricetag on it reading $0.01. Note that these were not barcodes, these were the actual pricing stickers. I took one, and went up to the counter.

    The cashier scanned the barcode. It came up as a penny. She called her supervisor over. Her supervisor looked at the register's display, looked at the price sticker. She popped her gum. The cashier popped her gum. They popped their gums together. "Give it to him" she said, "It's the law, we gotta give the price we give."

    The man behind me left to grab a PHB.

    I asked the cashier, "Could I get, y'know, more?" She shrugged.

    Out of honesty, I refrained from getting more, and went home with my single PHB for a single penny. Plus tax, which rounded down anyway.

    My belief is that the store needed to put the PHB's into inventory, but had no actual sale price for them, since they were intended purely as giveaways with another purchase.

    I also know they didn't have to give it to me for that price; New York State law requires a merchant to abide by a stated price, unless that price is obviously a mistake.

    Not that this story has anything to do with anything, but it reminded me, and I thought I'd share. No one said you had to read it.
  • Re:I wonder (Score:3, Interesting)

    by damsa ( 840364 ) on Sunday December 04, 2005 @11:40PM (#14182171)
    He didn't really steal the item. It was a counter offer. If I went to a car dealership, the sticker price said 30k. Then I offered 25k, and the other side accepted, then would it be stealing? No, because there was an offer, acceptance and consideration, a valid contract. The clerk as an agent of Walmart, saw the iPod, saw it was 4.99 and sold it at that price. Of course, it may be a mistake or fraudulent, but it is not stealing.
  • by Anonymous Coward on Sunday December 04, 2005 @11:45PM (#14182209)
    "They'd "forget" to scan the TV, and the friend would roll right out with the helper employee (another scammer) and put the TV in a car."

    My sis manages a large department store as she is the capitalist of the family.

    Every few months, she use to come to me asking if I could burn some videotape to DVD or print out stills. The funniest one was where one of the employees rang up $30 for 3 cart loads of clothing...they kept coming and coming and coming and the assistant manager actually helped the thieves out the door. Both the cashier and the thieves are all in jail now.

    At least half the cameras are pointed at the cashiers (and there are a LOT more cameras than either the staff or the customers know).

    The newest thing the sis has is that she upgraded the cameras to a computerized system...all the 'tapes' are synched. Its a closed system that is encrypted and will verify the checksums for when you burn out to CDRom...the CDROM is pretty cool even though it outputs a Windows app...you choose what views you want and can switch while watching. Its hooked into the cash registers and one of the views is a virtual register screen...once she had this hooked up, within two months, her staff was asked to show up for a store meeting and a quarter of the staff was arrested, another half let go and the rest were given bonuses for being honest.

    I realize now I probably have to post this anonymously (seems as though I've responded to a few of your posts this way)...the sister ended up *HAVING* to take another job in another city (same company) after even the police said they couldn't protect her if she stayed at this location. Most of the theft was gang related.

    In her new location, she hangs out in the background a little more managing a few locations -- and in the last two years, her stores have a third of the shrinkage they had the previous years...pretty significant numbers (she estimates the security revamps have cost her over a million in less than a dozen stores, but have saved more than that in its first year).

    All in all, stores KNOW that its almost always an inside job. But if they don't tak action against the lesser shoplifters (and do so in extremes) they will attract a clientel that will eventually want to work there...and continue to steal. Basic sociology...
  • by Manchot ( 847225 ) on Sunday December 04, 2005 @11:56PM (#14182269)
    When I was in high school two years ago, I worked as a cashier at an urban Target. As you can imagine, it had a fairly high shoplifiting rate, and people tried to pull scams like these all the time. Typically, it would manifest itself as someone taking a bar code from something like a potted plant (which had sticker barcodes) and sticking it over the real one. From the first time that I first noticed this a couple weeks after I started, to a year and a half later when I left for college, I probably saved the company about $3000 through catching this fraud alone. The trick was to glance at the display for all items that looked expensive to me. However, aside from the pat on the back and the free $10 DVD that I got after saving the store $300 in one transaction, I never saw a dime of that. (Actually, that $300 one was really clever: he managed to graft a couple of those souped-up Playstations with the label of a regular, old Playstation, so that come transaction time, the computer still said "Playstation.") Granted, assets protection (i.e., the security team) loved me, and it probably didn't hurt me come review/raise time. I never even had the satisfaction of seeing any of those people get arrested, because once they noticed that the jig was up, they found an excuse to leave as quickly as they could. (Also, Target had a policy of not arresting until they had definitive proof of shoplifting, i.e., camera footage. In this case, they'd have to trace back the person's motion through the cameras to when the label was fraudulently placed, a fairly time consuming process. Otherwise, they could get sued.)
  • No spyware here (Score:2, Interesting)

    by SteveXE ( 641833 ) on Monday December 05, 2005 @12:02AM (#14182293)
    intersting
  • More shenanigans (Score:2, Interesting)

    by Dougthebug ( 625695 ) <dr.de3ug@gmail.IIIcom minus threevowels> on Monday December 05, 2005 @12:20AM (#14182387)
    This reminds me of another trick a friend (who will remain anonymous) of mine once tried to pull. He heard some guys on irc talking about how they would buy new expensive video cards from circuit city, install them, put the old card back in the box and return it for a full refund the next day. Apparently the store clerks just look to see if there is a card in the box, and make you sign something.

    So my buddy tried this with a new sound card. He paid cash and decided to forge his name when he returned it. Unfortunately the dumbass forgot do clean his old card off before putting it in the box to return it. So he took the card back and the clerk looked at if for a minute, then called their electronics 'expert' over. He looked at it and said something along the lines of, "it's dusty, I don't know if we can take it in this condition." So my friend panicked and said ok and promptly exited the premises without making the return.

    I suppose this isn't quite the same as switching barcodes, but I wonder what the punishment would be if you were caught. Anybody else gotten away with this?
  • by stienman ( 51024 ) <adavis&ubasics,com> on Monday December 05, 2005 @12:25AM (#14182421) Homepage Journal
    It's much harder to forge an RFID tag

    True.

    unless you have the private key of the transmitter, or have some high-tech spy equipment that can capture the entire negotiation stream between the transmitter and target to crack it later... and the cost of doing either of these things would be prohibitive to anyone who wants to make money off shoplifting (you'd be better off planning a bank robbery).

    False. The stores aren't going to spend more than a penny or so per tag, and the tags will not be encrypted. They will have individual id numbers, though, and these will be stored in a database - much like a serial number. So you'll have to scan an existing unsold item in the store and duplicate that tag onto your target item. This is going to be difficult and expensive, since you have to disable the existing tag (inside the packaging) and add your own tag in an unobtrusive manner.

    It is harder than barcodes, which anyone can print from their own computer. But I doubt retailers are going to be employing anything more than the simplest 64 or 128 bit ID. These can still be duplicated with a simple circuit (coil, a few passives, maybe a tiny battery) and microcontroller. Should be small enough to fit under a sticker: "New! Improved!" or "2 Year Warranty!" or "Newspeak V5.2 Included!"

    The real deterrent is that when they scan the item you stole the tag from, they'll notice it's been sold, and a stock check will show up the missing item you stole. Since they are tagged with serial numbers they can track down your transaction. With even the time, date, and cash register number they'll be able to pull up camera footage if you were smart enough to pay cash. If not then they'll have lots of electronic information about your CC, debit card, or check to track you down with.

    The biggest advantage to using RFID is not easier and more accurate scanning, it's that every item in the store now has a serial number and exists in the database. Better stock control will improve the bottom line - this is Walmart's biggest strength. If everyone goes to RFID then Walmart will have many more significant competitors since a lot of the operation they've worked so hard on is built into the whole RFID system. Perhaps one reason why they aren't pushing it so hard.

    -Adam
  • by melikamp ( 631205 ) on Monday December 05, 2005 @12:28AM (#14182437) Homepage Journal

    if you must steal, steal from the big box stores because they have already accounted for you.

    I worked for a while for Fry brothers, in the loss prevention department. The attitude there is just the opposite of "it's been accounted for". While they, no doubt, have to adjust their pricing due to theft, you should know that they are doing everything they can to minimize the losses -- all the way to zero.

    One way they do it is, of course, by increasing security. And the other way -- by having employees (mostly managers) to pay for stolen items out of their own pay checks (so they do at Fry's -- I don't know about other stores). I have been treated to a tale about one courageous manager who literally dragged a customer out of his car through the window, because the latter was about to drive away without paying for his new car audio system.

    The moral is: stealing is difficult and risky, regardless of the store size. And I would say, it only gets harder as the potential loss goes up. If you want to have it easy, you have to steal something that no one else is stealing, but then you won't be stealing anything worthwhile :)

  • by mjphil ( 113320 ) * on Monday December 05, 2005 @12:31AM (#14182455)
    How about printing bar code stickers for non-returnable bottles? Solves two problems: recycles water/ice tea bottles, and puts a little more coin in my pocket.
  • by arexu ( 595755 ) on Monday December 05, 2005 @12:38AM (#14182492)
    Nah -- as a previously underpaid Big-box bookstore chain worker drone, it offended me to see scammers trying such obvious shit. Lame, lame lame, no pride in their work, most of these shoplifting/price swapping losers. And their whining when confronted -- weak. When it became 'tell me a story' time, they weren't any better than baldoni. Ripping off my store meant more work for me later come inventory time, so me and my fellow ex-military coworkers always advocated direct and violent action (which our managers, who had a greater appreciation of the legal system, always declined...).
  • by Cramer ( 69040 ) on Monday December 05, 2005 @12:56AM (#14182578) Homepage
    Oh, he's still charged with theft. By printing those barcodes, he's stepped into the realm of fraud. (and he ain't a big enough fish (CEO) to get away with it.)

    And it would appear he's probablly lying, too... seeing as he pulled the same scam to steal the printer he used to print his barcodes. The whole "poor student" crap isn't going to get him very far either. He wasn't swaping barcodes on produce at the local mega-mart; he's stealing expensive electronics by defrauding the store. If it were simply walking out without paying for it, the store might've let it go without pressing charges -- poor college kid and all, but knowing he's defrauded the store, they aren't about to let him walk.
  • by plover ( 150551 ) * on Monday December 05, 2005 @01:36AM (#14182750) Homepage Journal
    Sorry, but you're really incorrect there on a lot of counts. First, shrinkage as a percent of sales due to theft has actually shrunk in the past few years, mostly due to enormous investments in loss prevention systems and paid restitution from the theives they've caught. Yes, the major retailers account for shrinkage in the price, but they also spend incredible amounts of money on anti-theft systems. They'll even push the limits of alienating their best customers to stop thieves. And they will announce it, too. They've stopped worrying about "embarrasment" -- they want the thieves to know they'll be caught if they try to steal from them. If they can deter the thieves, it's better all around -- prosecution is expensive, even with the promise of restitution. Having the bad guys not show up is a win-win. The stores' costs go down. And the would-be thief isn't a bad guy, and doesn't go to jail and screw up his life with a criminal record.

    Retail theft from big box stores is a huge business, you might be amazed at the levels of both sophistication and brutality involved in the crime rings that have developed around the practice. Retailers are in the position of having to come down hard on every thief in hopes that they're breaking into one of these rings. And the systems that are in place to catch these big thieves can also catch the little guys.

    Even your advice is no good: if you steal from the big box stores, expect to be expertly prosecuted like a major-league thief if you get caught. If you steal from a mom & pop store, they might not have the resources to bring you to justice. For example, a friend of mine owns a convenience store in a summer resort town, and he's thinking he'll have to go out of business due to the theft of his 4th of July receipts. He can't afford to take time to fight all the legal battles and still hold down his day job. And any restitution he may hope for will take far too long to receive to keep the store open in the meantime.

    So my advice is "Stealing is stealing: if you must steal, reconsider your options."

  • by roman_mir ( 125474 ) on Monday December 05, 2005 @02:15AM (#14182919) Homepage Journal
    But sure they are. Why shouldn't I murder except for fear of being commited to a maximum security prison? Everything else is just about the same.
  • Re:Class 5 felony (Score:3, Interesting)

    by AK Marc ( 707885 ) on Monday December 05, 2005 @02:33AM (#14182992)
    That and you could just run, no body is supposed to chase you under any circumstances, at least at Target.

    Yup. You can't go back to that store, but if you just take it, don't look so nervous they stack the exit with security, just grab it, walk to the checkout, right past, and out the door. The beeper will go off, but I've never seen anyone go after someone that has left a store, even though I've seen the alarms go off a bunch of times. On more than one occassion I've made it out with tagged merchandise. One, the sales clerk realized she didn't get the tag off, the alarm was not very loud, and no one stopped us as we walked out with a tagged shirt. I got home, saw the tag, and went back. She remembered and was expecting us to come back to get it taken care of. But the alarm did nothing other than let them know something that shouldn't has already left the store.
  • by Matthaeus ( 156071 ) on Monday December 05, 2005 @02:41AM (#14183024) Homepage
    Used to work at Target on the logistics team. Inventory is done once a year. That's it. And when that report comes in, everyone is sat down and told to pay more attention 'cause we lose the equivalent of a TV a week from the electronics department alone.

    So we paid attention for a month and went back to doing our work. It's possible to steal from a big box store and not have it noticed for a long time.
  • by Skim123 ( 3322 ) on Monday December 05, 2005 @02:42AM (#14183027) Homepage
    If you're OJ or Robert Blake you can kill people and only be punished monetarily. And if you're smart enough (or have good enough advisors) like OJ, you can buy a multi-million dollar house in Florida, declare bankruptcy, and then keep your house and stiff the family of the people you murdered.

    Ah, sweet justice.

  • by Browncoat ( 928784 ) on Monday December 05, 2005 @03:16AM (#14183131)
    I used to work for Victoria's Secret (yes, I'm a girl) and we were told that if someone was stealing and you saw them steal, you can't do anything about it until they leave the store. The key is to call security and have them at the door, waiting for them to leave. Or, have security walk through the store and become a presence to everyone, so the thief will hopefully put back whatever he/she took.

    As far as I know, from the time I was there, we haven't had to call security to physically stop anyone. Their presence was pretty much all it took for us to know that we at least minimized the theft, even if they did end up making out with some merchandise.

  • EAN/UPC Barcodes (Score:2, Interesting)

    by owlet ( 144510 ) on Monday December 05, 2005 @03:39AM (#14183209) Homepage
    At least here in Finland you can't just change the price of a product by changing the barcode. The cash register uses the original EAN/UPC barcodes of the product to identify it and checks its database for the current price. A new barcode would show up as an unidentified product.

    And switching barcodes is rather difficult, as the barcode is part of the product packaging. A sticker would look quite suspicious (although they do exist). And since the cash register always shows the product name, a switched code would display the name of the original product.

    The returned recycle bottle receipt might be one exception. I think it encodes the sum of the returned bottles, and the cash register could accept custom versions. (It also might just use unique codes generated by the recycled bottle collector machine.)
  • by rossz ( 67331 ) <ogre&geekbiker,net> on Monday December 05, 2005 @03:41AM (#14183216) Journal
    It varies by state. Here in California, it is definately illegal. It's also illegal for a store employee to lay a finger on you. That's called battery.

    I worked with someone who was a former security employee of Frys. He was under the impression that it was perfectly ok to rough up suspected thieves. Bullshit. My aunt is the V.P. of security for a _major_ clothing chain. She couldn't emphesize enough that you never, ever use force of any type to detain someone. The potential damage in lawsuits (and public relations) is way too much compared to the tiny merchandise loss if someone decided to resist. Especially if it turned out to be a mistake (which does happen).

    The rules she used at her chain:

    1. You must see the person take the item.
    2. You must never lose sight of that person from that moment until they leave the store.
    3. You had security personal confront the person AFTER they left the store. 99% of the time the person just gave up on the spot.
    4. You called the police immediately.

    For that 1% who didn't cooperate. Security simply followed the person until they could get a license plate number, then called the police.
  • by Anonymous Coward on Monday December 05, 2005 @07:25AM (#14183762)
    Plus it gives you plausible deniability. "Your honour, hundreds of cases of swapped barcodes have appeared in this Walmart store, why would my client be the guilty one?"
  • by mike2R ( 721965 ) on Monday December 05, 2005 @08:11AM (#14183877)
    While that is true, if you can stop stupid thieves then you've stopped 95% of the problem.

    Smart people tend to find some other way of supporting themselves than petty theft - I've had some frighteningly stupid people try to rip me off.
  • Re:Bartering? (Score:2, Interesting)

    by rmccann ( 792082 ) on Monday December 05, 2005 @11:45AM (#14185131) Homepage Journal
    Humans cannot read barcodes. So to a human, the product is not mis-described. If the clerk chooses to accept it then it's a valid sale. I know that's a murky argument.

"Ninety percent of baseball is half mental." -- Yogi Berra

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