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Restaurant Owners Use Zapper To Cook the Books

Hugh Pickens passes along a NYTimes report on software programs called "zappers," which allow even technologically illiterate restaurant and store owners to siphon cash from computer cash registers to cheat tax officials. In the old days, restaurant owners who wanted to cheat kept two sets of books. But because cash registers make automated records, hiding the theft requires getting into the machine's memory and changing that record. "...the Canadian province of Quebec may be the world leader in prosecuting zapper cases. Since 1997, zappers have figured in more than 230 investigations, according to the tax collecting body Revenu Québec... In making 713 searches of merchants, Revenu Québec found 31 zapper programs that worked on 13 cash register systems. Only two known zapper cases have been prosecuted in the United States... The cash register security industry is focused on protecting patrons and owners from theft by employees, which may be one reason so few zappers are uncovered in the United States. No one hires security experts to protect the government from devious businesses... As hard as zapper software is to detect, it is easy to make, said Jeff Moss, organizer of the annual hacker convention Def Con. 'If it runs on a Windows system and you are a competent Windows administrator, you can do it,' he said."

4 of 454 comments (clear)

  1. Physical access = carte blanche by eggman9713 · · Score: 5, Insightful

    Just one more example of how physical access to a machine can often circumvent any sort of software based security.

  2. Re:Yeah, and we should be surprised of this becaus by AuMatar · · Score: 5, Insightful

    The fact you suggested printing money to cover debts proves you wouldn't be one of those "best and brightest". Can you say rampant inflation? Study economics and history, particularly Weimar Germany. Beyond which, even if it wasn't bad economics it would be a poor idea- using taxes caps government spending by providing a maximum dollar amount, and makes the citizens aware of what it truly costs. These are good things.

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  3. Re:The dirty little secret by Gavagai80 · · Score: 5, Insightful

    People say "everybody does it" to try to relieve their guilt at stealing from the honest people. I don't cheat on my taxes, and I have to pay more because of the people who do.

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  4. Re:Warren Buffet pay 25%, his gardener pays 35% by daBass · · Score: 5, Insightful

    Yeah and most "sensible" countries also have a 50-60% tax rate

    You are quoting the top bracket, most people are not in that and actual tax rate is much lower. The interesting number is tax as percentage of GDP and the US is quite low, but not *that* much lower.

    The evidence is in the fact that standards of living for the majority of people in those countries is higher and with fewer people below the poverty line.

    It also pays for things like university education, health care, pensions and such that most people in the US have to shell out for themselves.

    So there is a lot more to it that just saying that the taxes are too high - governments generally do use these to pay for things that benefit the tax payers. One could argue that as percentage of revenue the US is a lot more squandering than most other countries - in things like defense spending, especially the past few years!

    Plus there is the issue of economies of scale - 300 million is a hell of a lot of tax payers!

    It's not how much tax you pay - it's about how much value you get out of it. And on that count most high-tax european countries are doing quite well.