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Barcode Scam Redux - Target's $4.99 iPod

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."

24 of 1,014 comments (clear)

  1. Haha hilarious by Anonymous Coward · · Score: 0, Informative

    The best part of this story is the whining by the guy who was busted. What a bitch!

    "I will NEVER EVER DO THIS EVER AGAIN and I am once more terribly sorry," Baldino wrote in a statement for police. "Please let me go for I am terribly sorry!!! I'm only a kid! Help me out. I just want to go home. I did this not knowing of the serious penalty that lies behind it. Please! Please! Please!"

    "I am extremely sad now, and I just want to go to bed," he wrote. "Please let me sleep in my own bed tonight."

    Too bad, pansy. Do the crime, do the time. God I hope this guy gets raped by a big black guy named Bubba. Fucking college weenies.

  2. Re:The crime is in getting caught... by brunes69 · · Score: 5, Informative

    If it doesn't happen often, why would a store put in a permanent fix for the problem?

    They already have. It's called RFID. If you have been around this site for the past two years, you've probably heard of it.

    It's much harder to forge an RFID tag 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).

  3. Re:The real thieves... by alienw · · Score: 2, Informative

    You can't buy an item without weighing it.

    Unless you hit "Skip Bagging", that is. Which I always do for _all_ the items because the scales are very screwy. Nobody seems to care. Of course, there is usually a cashier who sees everything you are buying anyway.

  4. Re:Some people are just plain stupid by dzarn · · Score: 5, Informative

    Yep, it was the same store. I live in Boulder, and we only have one Target. I'm tempted to swing by his dorm and ask him if he's always been this stupid, or was born that way....

  5. Re:What's wrong with people? - Lack of Preschool by Skadet · · Score: 5, Informative

    Personally, I can understand hypotheticals.

    Apparently not. The submitter's statement was -- to paraphrase in order to highlight the hypothetical even more blatently:
    Had I been in this kid's shoes, I would have committed the same crime in a different way which would have resulted in a higher probability of not getting caught.

    I replied that had I been in his shoes, I would have not committed a crime at all -- an additional hypothetical.

    There were a few hypotheticals in there, you missed at least one. Back to kindergarden for you!

  6. Old news... +ORC by purduephotog · · Score: 4, Informative

    Way back in the beginning of the Internet (Yes, kiddies, there was such a time) a man known only as +ORC wrote about 'codebaring' as he called it. He also spoke about the supermarket enslavement as to why supermarkets force you to go both counterclockwise and why they put all sorts of greenery and colours right when you enter.

    His name- +ORC. To this day no one knows who he was, but his faithful servant, +Fravia, kept his vigil for a number of years. When Anon.penet.fi went down he melted away.

    http://www.totse.com/en/hack/magnetic_stripes_and_ other_data_formats/161810.html
    http://www.woodmann.com/fravia/orc.htm

    1. Re:Old news... +ORC by jedo · · Score: 2, Informative

      Fravia is still around.
      http://www.searchlore.org/

  7. Re:Class 5 felony by Anonymous Coward · · Score: 3, Informative

    http://en.wikipedia.org/wiki/Felony has a good definition of a felony.

    A Class 5 is pretty much low-end stuff, few years in jail, a fine and the ruin of your reputation. (Good luck getting a high paying job)

  8. Dumber than you think. by twitter · · Score: 4, Informative
    A customer who thought he was brilliant cut out one of our logos from an ad and taped it onto a competitor's coupon. The delivery driver didn't recognize the coupon, and when he saw the tape he peeled it off in front of the customer who, of course, pleaded ignorance.

    The customer might have been ignorant. There are dirt bags who sell "discount" coupons, much like gift checks to the unwary. It sounds like a good deal for everyone, except the vouchers are little more than coppies made with some image manipulation program. The scam is prevalent in college towns with foreign students.

    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.

    The silly world of coupons, gift cards and other marketing ploys invites this kind of abuse. That's why they are a stupid idea to begin with. An honest price well advertised is a better deal.

    --

    Friends don't help friends install M$ junk.

  9. Re:The crime is in getting caught... by 084883447 · · Score: 4, Informative

    Theft is something that the big box stores build into their margins. For example, they know that some percentage (surprisingly large) will walk out the door, either in customer's or employee's hands (i call it shrinkage). They will price their products that much higher to make up for the loss. Usually, they dont spend that much on theft deterrance, because it really is a loosing battle, and they risk alienating their real customers.

    So, the moral of the story is: if you must steal, steal from the big box stores because they have already accounted for you.

    --
    -johnson
  10. Pop-Bottle Returns by detritus. · · Score: 4, Informative

    I'm surprised nobody has attempted to rip off the automatic pop-bottle deposit machines (obviously you would have to live in a state that has pop bottle desposits/refunds to understand). The machines generate a reciept with the dollar/cent amount embedded right into the barcode. It would only take getting a thermal reciept printer, and printing up some reciepts random dollar amounts, and redeeming them for instant cash.

    1. Re:Pop-Bottle Returns by Anonymous Coward · · Score: 1, Informative

      I actually tested this in college ***On ONE bottle*** (I lived in Michigan) I just wanted to see if it worked, and was too afraid to get busted, but if Meijer wants thier 10 cents back, I'll be happy to give it to them.

      this was before the $25 limit was putin place. Of course the broke college kids held on to thier bottles and cans, they usually funded the next weeks drinks.

      But water bottles do not have the deposit, so were just dumped into campus recycling bins. You could easily get your hands on a truckload of empty water bottles just by spending a little time walking through the dorms.

      So anyways I scanned the barcode off a plastic coke bottle, printed out a copy, and taped it over the barcode on the water bottle, sure enough, it worked, and as soon as the machine scanned it, it crushed it, essentially wiping out the evidence.

      Honestly it was tough resisting the urge to go further, since I would walk around campus and literally see thousands of empty water bottles every day.

  11. Re:Some people are just plain stupid by ring-eldest · · Score: 2, Informative
    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.


    If you really had worked at Target, you would know they do an inventory once a year at the retail stores. There is no daily inventory of any sort, just sales reports and estimates. Only if someone noticed and later reported it would the tapes be of any use. (and the single security guy looking at a dozen video screens can't see everything)

    A system that you describe (daily inventory) won't even be humanly possible until the items contain RFID chips. It can take up to 10 or so hours to do a store inventory now, and that doesn't even include the weeks of behind the scenes prep time. Dozens of people are involved, and the whole thing happens overnight.
  12. Often it's not their place by Sycraft-fu · · Score: 3, Informative

    Some stores have a pretty strict "honor the sticker price" policy. I'm not sure why, false advertising lawsuits maybe, but at any rate. Happened to my father at Sears once. He was buying a tool, a fairly expensive one, and it rang up for half the listed price. He told the clerk that was a mistake, but the clerk said didn't matter, you got the lowest price.

    I don't know about Target, but maybe it's similar. They may tell cashiers to simply give items to a person for the price that's rung up to avoid problems.

    1. Re:Often it's not their place by Deadstick · · Score: 3, Informative

      Sears used to be famous for those errors, especially in the catalog department. I haven't shopped there in many years, but in the Seventies you had the option of buying items off the counters or ordering them from Catalog Sales, usually for a slightly lower price. You would go to a desk back by the loading dock, fill out an order and pay for it...and then you'd pick it up a week or so later.

      The kicker was that since you paid in advance, you paid for what you ordered -- which might or might not be what you got. Orders were filled by warehousemen working from carbon copies of hand-scrawled forms, and it wasn't the least unusual to pay for a wrench and get a drill press...and if the error went the other way, you could always refuse it.

      Something similar would happen with warranty returns...failed tools were exchanged for rebuilt ones, and they were even less accurate at matching those up.

      rj

  13. Re:The remedy is trivial... by SagSaw · · Score: 3, Informative

    In other words, the label shouldn't convey the information "Charge this customer $X.XX", it should convey "Check for item XYZ... Return price."

    That is already how the system works for most items. The scam then is to replace the barcode on the expensive item with an valid barcode from another, less expensive, item.

    --
    Come test your mettle in the world of Alter Aeon!
  14. Re:What's wrong with people? - Lack of Preschool by middlemen · · Score: 1, Informative

    Back to kindergarden for you!

    Kindergarten is the right word!! You should go back too :)

  15. Re:Some people are just plain stupid by vloktboky · · Score: 5, Informative

    If you do or did work for Target, then you should also know that those IPods are kept under key lock and are handled by whomever is working in the Electronics Department from the moment they are taken out of the lock case to the moment for which they are paid. I held the position of Electronics Specialist at a local Target store; I would be quite furious if someone from my team would let an IPod leave the store at $4.99.

    Quite frankly, I am baffled as to how this person could have managed to place a fake barcode on the IPod itself. For starters, the barcode on the IPod is a very slim one burried beside two other barcodes - the serial and one other one which I can't remember. When an IPod is taken out of the lock cases, they are either paid for at the department's registers or they are taken up to the front lanes and placed in a special location. The cashiers, or at the very least, the GSTL should have kept an eye on this IPod and whatever was left up there. The only way I can imagine this could be done is if the person asked for the IPod to be taken up front, managed to grab it without anyone noticing, placed the fake barcode on the device, then put it back and went to stand in one of the lane's lines to have the unfortunate cashier grab it and ring it up. But at this time of the year, my old store (and myself) would have made it a rule by now not to bring any locked merchandise up to the checklanes and force the guests to pay for it back in the department or hold on to it in a locked drawer by our "boat" or desk area where the registers are kept until the guest was ready to pay for it. There should have been no way for this person to place a fake barcode on the IPod without a Target Team Member noticing, let alone have it ring up at such a price and not fool the Team Member.

    I'm also having a hard time trying to understand how the fake barcode was even detected by the systems. Target uses the DCPIs of the item, a 9 digit department-class-item relationship that looks like xxx-xx-xxxx. They don't use the UPCs; they match them to the DCPIs. All of these are kept in a system database; if you enter one that isn't on that database, it comes up on the registers saying "Item not on file." So he had to have used one that matched up with an existing DCPI at $4.99 which means the item description and even the department/class number should have been totally different from what the standard IPod's barcode comes up with.

    I believe whatever Target store this was, their STL, ETL-AP, ETL-HL, and Electonics Team Lead should all be questioned about their neglegance, not just the person who rang it up at that price with a fake barcode and let them get away with it.

  16. Definition: order of magnitude by dhasenan · · Score: 2, Informative

    An order of magnitude, in situations like this, is best defined using scientific notation.

    A number, let's say the cost of an iPod, is represented as a value and an order of magnitude:
    149.99 = 1.4999 x 10^2

    A number exactly one order of magnitude above that one would be represented much the same, but with an exponent one higher:
    1499.90 = 1.4999 x 10^3

  17. Re:From the article: by idobi · · Score: 5, Informative

    See the actual police report and his statement @ http://www.thesmokinggun.com/archive/1202052boy1.h tml

  18. Re:Class 5 felony by Tim+C · · Score: 2, Informative

    Not only that, but just grabbing the iPod and walking out could well just be a spur of the moment thing. Forgery requires preparation, planning, etc. In general, the law is more forgiving of spontaneity - even for murder, if you (say) catch your partner in bed with someone and kill one/both of them, you'll generally get a lesser sentence than if you leave it, then hire a contract killer or lure them away somewhere secluded, etc.

  19. Re:The crime is in getting caught... by gcatullus · · Score: 2, Informative

    At a loss prevention seminar heard teh following: 5% of people will always steal no matter what, 10% of people will never steal no matter what, but teh other 85% will steal if thefollowing conditions are met. 1 That they don't feel they will get caught 2 That they have a need, real or perceived for the money, item, etc. 3 They have the oppourtunity. If you make a manager pay for shrink out of pocket, then the employer is creating a "need, real or percieved" in the manager to steal it back. Not a very smart idea, since they already have the oppourtunity and they probably know how lickely it would be for them to be caught.

  20. Re:You're right about not caring! by Anonymous Coward · · Score: 1, Informative

    I am very slow to translate latin and I took least a minute puzzling as I'd never seen this phrase before. For any who would like to save the time, "quiquid id est, timeo puellas et oscula dantes" means: "Whatever it is, I fear the girls, even when they kiss."

  21. Re:Some people are just plain stupid by ifoxtrot · · Score: 3, Informative

    Firstly I should correct you in that he never stole an iPod - he stole a iPod DJ System and a iPod Speaker System. It may well be that these products are freely available on shelves. You are, however, correct in your assumption the he used cheaper yet valid barcodes. This link prints the police statement for the arrest.

    Essentially the first time he commited the crime he bought a DJ System by using the barcode from a CD player (which he had scouted out previously). The second time he tried (and was caught) he replaced the barcode for an Altec Lansing iPod speaker system with a barcode for earphones. He got caught because he was recognised by the security firm following the first incident.