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$1.5 Million Bar-code Scheme Bilks Wal-Mart Stores
nomrniceguy writes "Two couples have been charged in a
price-switching scheme that allegedly defrauded Wal-Mart stores in 19 states of $1.5 million over the last decade.
Authorities said the scheme involved using a home computer to produce UPC bar codes for cheaper products and slipping them over the real codes on high-priced items. The suspects then allegedly sold the merchandise, or returned it for refunds or store gift cards that also were sold."
Are you new to computers?
That weird box sitting on your desk is called a "printer". Some of these "printers" can even print "pictures".
Now look at a UPC. It's made up of black lines (the numbers are just for show) which is about the easiest thing to print in the world. Now, look in your desk drawer for "Glue".
I think you can figure it out from there. If not, this topic has been covered ad-nasuem in 2600 for about the past 10 years (or longer?). Hell, skip the computer. You can make them with a black pen if you're bored. I've done so and tested them out when I worked in retail. It's really not that tough.
The receipt first of all has the wrong item, and secondly says it was only purchased for $10. Even if they are dumb enough to mistake the plasma television for a toaster, wouldn't they only get their $10 back?
Yes, in theory. However, one of the reasons my mom loves walmart (and i cant really argue this point) is that they will take *anything* back. No receipt? Fine! Got it somewhere else? No problem! You broke it?! and coughed on it and it's a food product?!! Sure, we'll take it back! They are very accomadating with returns.
The possible reasons why the cashiers probably didn't notice are: 1. they don't care enough to name-match things they're scanning, 2. they didn't speak/read english well enough to know the difference, 3. the couple selected objects that had multiple versions spanning a price range (like buying a 512MB flash card with the price of a 128MB one), and 4. they used self checkouts (once Wal-mart implemented them). If they did bilk Wal-mart out of 1.5 million, then I'd say at least one of the four above were true at some point in their spree.
On the returns side, if they returned it for refunds sans reciept (like most stores will allow around Christmastime) then they could possibly do return them to make money.
what kind of television is this? Bebeep! oh oh its a... toaster....? huh... oh man is that a ten-speed? Bebeep!... no.. huh... tricycle... Oh.... alright a Lindows machine!!.... Bebeep!... n-no?.... i see... 5 gallon jar of pickles....
I worked at a Wal-Mart for a while as a cashier. Our store had 4 self-checkout machines where you ring up the items yourself. One cashier was assigned to "Paystation" where people could pay with checks, and other assorted stuff the machines couldn't handle. When working at the Paystation, you were given a barcode card which when scanned would bring up an admin-like menu with price override options and other assorted "cashier" tasks. At one point, I scanned that barcode at my register, printed a receipt to show the number it represented, took that home and recreated it on my computer and printed a new version. I taped it on the back of my name tag, and it worked like a charm. Here's the scary thing: Cash Office also used a barcode for those machines to refund money, etc. They could literally empty the machine of cash with their card. If one took a picture of their card (which usually was worn around the neck in plain sight), it wouldn't be hard to recreate the bar code without knowing the numbers. Talk about fraud potential... I almost wanted to do it as a proof-of-concept, but thought that just being caught with the barcode would get me in big trouble, so I didn't end up trying.
I used to work at Fry's Electronics, and we had a pair of thieves who did this.
They'd paste the UPC of a lower-priced item over the sticker of a higher-priced item of similar make (handhelds were good for this). Even if the checker was looking at the display, you might not catch the fact that the model numbers on the PDAs didn't match. The guys at the door didn't always catch it either.
Basically, they took advantage of two things at my location: the fact that relabelling items that had price changes did not always happen 100% (the result being that sometimes an item scanned at a different price than was ont he sticker; and believe me, I handled plenty of customers who complained that the CD/DVD/software that said $19.99 on the sticker rang up at $29.99) and the fact that many items Fry's purchased were often bought at clearance or through a special arrangement, so oftentimes the items had custom stickers over the original barcode.
So you have A) items that legitimately had UPC stickers on them, and B) items that scanned at different prices. It was a recipe for disaster; we only caught them when someone noticed them sticking a label on a product.
Jay (=
It should be pointed out that this is in fact, honest to goodness Wal*Mart policy. The official Wal*Mart literature and training clearly states it's their policy to take back ANYTHING. The reasoning they give is that a happy customer is a returning customer.
Ask anyone who's worked there long enough, and they'll tell you all sorts of stories about people returning things which they don't even carry. Inventory time becomes hilarious in a very unhilarious way.
The policy doesn't extend to everything though. I belive things like CDs and DVDs can only be exchanged for the same item. It should also be noted that opened murchandise isn't resold, and that stores will donate a certain amount to charity. The rest is thrown in the trash compactor.
Oh, one more thing I forgot to mention. This wasn't available 10 years ago of course, but now you can just write the number under a UPC code down, then go to Google and type it in, and viola, auto-generated UPC graphic, ready for printing. Try it out.
Do not read this sig.
A handful of years back, in a time when my morals weren't exactly as defined as they are now, (heh) I really wanted the brand spankin new "Super Smash Bros." for Super Nintendo. Problem was, I was fresh outta coppers. Yep. Not a dime to my name. So I 'borrowed' my dad's credit card, (who I share the same name with. Rock.) and headed on down to Kmart and bought the game.
:)
Obviously all this hard work of buying video games would make anybody hungry, so I went to silence my grumbling belly meats by making a stop to the Burger King. After ordering my food and taking a seat, I began to unwrap my new Super Smash Bros video game over an 8-piece chicken tender value meal.
It is here where the clouds parted, and God himself reached down and touched me. It is here, that I calculated and measured the exact balance and weight of the Super Smash Bros cartridge in comparison to the equal amount of ketchup packets.
I took the packets and placed them neatly back in the cardboard game housing, packaging everything back up. I took the instruction manual as well, and replaced that with a good 7 or 8 napkins, folded rather nicely. Then, I went next store to Office Max, and had them shrink-wrap the game. Viola. Slap on one of them sticky-hangy-tab thingies, and you got yourself a game fresh off the shelf from behind those locked glass windows.
So, now the scary part. Time to find a differant Kmart. Sweaty and horribly nervous looking, I went inside to make the return. I claimed something to the tune of it being my birthday and that I had already owned this gift, so I wanted to return it. Everything went surprisingly smooth, except for the camera staring at my face. I still wont go back there to this day.
Now - Think about the possible following scenario for just a moment. Imagine - Your in your early teens, and you did your chores. It was a nice sunny weekend afternoon, and your dad felt like doing somethin nice for you. He remembers you going off about that new game. He buys it, brings it home to surpise you... your so excited! You guys have one of those rare but really heart felt father and son kinda hugs. Life, is perfect...
You open the box to your new game. In it, you find a small brick of ketchup packets and neatly folded napkins.
Sweet Jesus, I would give my first newborn child to a rabbid tiger just to see that facial expression.
PS: I used to work at Office Max. One day, a guy came back in after just buying a typewriter. Instead of a typewriter, he found a bag of potting soil. He was irate - I smiled. =)
This method is used to obtain competitive pricing all the time. For example, if Half Life 2 is going on sale at the beginning of the month, and Joe Retailer wants to know how much his competitors are going to charge:
Just print off the UPC code onto a sticker, and go into a competitor (like Walmart) a week before it goes on sale. Put the sticker onto another game, and ask the cashier for a price check. The scanner computer already has the pricing information in it, so the price that they are going to charge shows up on the register!
At first, I was just disgusted at these people who decide to scam the system the best they can and for as much as they can. When I saw they'd be getting 8-whatever years for this, I felt a little better.
Then I see people posting on tips how to do this more efficiently, how they have done it at Home Despot, Best Buy, and so on, and I wonder...
Are these the same people that think downloading movies and music is just fine? How are you justifying this, since every thief I know has some way to justify it.
They charge too much, therefore it is right of you to systematically lower the price via a UPC swap?
You couldn't afford it, therefore it is right of you to systematically lower the price via a UPC swap?
You wouldn't have bought it at such a high price, it is right of you to systematically lower the price via a UPC swap?
So, by stealing an item for a lower price, you're driving up the price of the rest of their inventory. You can now justify their high prices by requiring them to set the prices higher to account for loss, the loss you have created. Nice job.
Everyone has some kind of justification, I bet these criminals had some as well. They did not want to work, found the system easy to exploit, and wanted free money... what better reason is there really? Sure, they are "innocent until proven guilty" I suppose.
I'm not sure if it's the lack of morals, or just the lack of brainpower that causes such things. Self-justification of stealing is still just stealing and it makes me sick.