$1.5 Million Bar-code Scheme Bilks Wal-Mart Stores 618
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."
Doesn't add up (Score:4, Interesting)
Re:Doesn't add up (Score:4, Insightful)
The people that work there are not like in the commericals, they are just scaning you product, waiting till it's there chance to die.
Re:Doesn't add up (Score:3, Informative)
Of course, she takes the piss out of me because I look at every receipt to check the print quality, but that's because I do tech support for most of the UK's supermarkets...
Re:Doesn't add up (Score:5, Informative)
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.
Re:Doesn't add up (Score:5, Interesting)
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.
GOOD policy (Score:3, Interesting)
I remember when they tried to force me to use a TI graphing calculator in middle school. I used my HP for the most part, just as long as I had the TI with me the school didn't complain. But I've never had an item break as much as that TI, and each time it broke I just brough it back to Walmart. Seriously, a little bump on part of the screen and the thing would shatter. One broke when I slid the case on at an odd angle. Fuck you
Re:Doesn't add up (Score:5, Interesting)
Re:Doesn't add up (Score:3, Interesting)
I argued for a bit and eventually gave up and just gave the box to a friend of mine who owns a
Re:Doesn't add up (Score:3, Funny)
Re:Doesn't add up (Score:2)
I don't know if this is what they did, however this is how I would go about doing it. As long as the cash rings up something that looks right, it should be alright. Though, the cash does display items using abreviations and other weird short forms to fit it on the line. I've seen items scan simply as "12 pack" or "toy", which isn't descriptive in the least.
Re:Doesn't add up (Score:2)
One time I saw someone taking parking tickets out from under the windshield wipers of vehicles and placing them under the windshield wipers of other vehicles.
They didn't get anything out of it. They just wanted to cause trouble.
The subtle art of Curtation? Ha! (Score:3, Interesting)
Check this classic out from "The Devil's DP Dictionary", via the Linux fortune cookie program:-
curtation, n.:
The enforced compression of a string in the fixed-length field environment.
The problem of fitting extremely variable-length strings such as names, addresses, and item descriptions into
Re:Doesn't add up (Score:5, Interesting)
an average of just over a hundred bucks a day per person. shouldnt be too hard, espically once you get your shit together, to keep up that type of scam rate.
also, you have to figure in the fact that any loss prevention team is going to quote any damage estimate at as high as possible. when i was younger, me and some friends tried to rip off walmart in the same way, except we just cut the UPC from one product and put it on another. trust me when i say the cashiers could really care less. however, we were busted by some undercover shoppers in the process. we put a $20 UPC on a $30 product, but the police report quoted $50 worth of stolen property.
Re:Doesn't add up (Score:3, Interesting)
But, when someone else went to buy the original $20 item, they probably just looked up the price and charged them $20. The real value of the steal was $10+(five minutes of some cashier's time at minimum wage)
Re:Doesn't add up (Score:3, Insightful)
Re:Doesn't add up (Score:3, Insightful)
I don't think that it is a question of caring.
You must remember that Walmart has a HUGE inventory and for all purposes impossible for any single checkout clerk to be aware of price fluctuations. Couple this with the fact that Walmart awards clerks who are very fast at checking out, and it is apparent that by time the thieves made it to the checkout line it was too late already.
The article mentions that they were well tra
Re:Doesn't add up (Score:3, Informative)
It actually has nothing to do with caring. I worked at a grocery store for quite a long time earlier this year, and store policy, it seems for most retail stores is not to do anything to interfere with a customer who is shoplifting, ripping you off, ect. Furthermore, the customer is always right rule still holds. The only time a lowly checker is supposed to even consider doing anything is if the manager instructs them
Re:Doesn't add up (Score:3, Insightful)
Worst job I've ever had.
I never noticed anyone stealing so Wal Mart don't sue me when you read this.
Re:Doesn't add up (Score:2, Funny)
Re:Doesn't add up (Score:3, Informative)
Re:Doesn't add up (Score:5, Interesting)
Re:Doesn't add up (Score:2)
I've used a scanner a few times to read old thermal-print movie stubs. It was surprising because the text was almost invisible. After a little playing with the levels in The GIMP, the text showed up pretty well. But I doubt your local supermarket employees would even know you can do that, let alone have the time to do it.
Re:Doesn't add up (Score:4, Insightful)
It makes me wonder why anyone would try to rip off walmart.
Re:Doesn't add up (Score:5, Funny)
Judging by the article, there would appear to be at least 1,500,000 very good reasons...
Re:Doesn't add up (Score:2, Insightful)
BTW, kudos to the submitter for providing a link to the light-weight (printable) version of the article.
Re:Doesn't add up (Score:3, Informative)
Re:Doesn't add up (Score:2, Informative)
Re:Doesn't add up (Score:5, Informative)
If they're doing Item Data Sync (and I know for a fact Wally World is, along with some other retailers -- since they're doing it with my employer) not only do they know the price, the UPC code, the weight, the color, but they know the inner pack (how many in a "multi-pack" if any,) how many per case, and the cube of the item so that they know how much volume the item will take up in the truck and how much real estate it will consume on the pallet. We have Logistics Strategy Analysts who think it's a Good Day (tm) when they can get a truck that gets closer to the nirvana of 4000 cube (which is the theoretical capacity of a 53' trailer.) The cube data that is provided by Item Data Sync allows them to max out shipments without "weighing out" (being overweight) or "cube out" (being too big to fit on a single trailer.)
It's a trivial matter to send this weight data to a checkout scale.
Re:Doesn't add up (Score:2)
Re:Doesn't add up (Score:3, Insightful)
Re:Doesn't add up (Score:3, Funny)
Re:Doesn't add up (Score:5, Interesting)
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.
Re:Doesn't add up (Score:2)
Reminds me of that old David Letterman joke about Dan Quayle: Letterman suggested that one of the things a person should remember to do if ever to meet Mr. Quayle was to ask him for change of two tens for a
Re:Doesn't add up (Score:2)
Re:Doesn't add up (Score:2)
Print the label for the $100 TV, stick it onto the $200TV. Buy the TV at Walmart A.
Lose receipt.
Remove fake label.
Take TV to Walmart B. Refund for $200 (or $200 gift certificate).
Go to Walmart C. Buy two $200 TV's for $100 each...
Re:Doesn't add up (Score:5, Interesting)
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 (=
Re:Doesn't add up (Score:3, Funny)
Re:Doesn't add up (Score:2)
The cashiers are part of the con - crook #1 goes to work at WalMart, and then crook B goes to A's register/checkout lane. Scan, pay small money, leave, rinse, repeat.
And before you think you can do it too, this hole has already been plugged - think up your own scam.
Re:Doesn't add up (Score:3, Funny)
Re:Doesn't add up (Score:3, Funny)
Re:Doesn't add up (Score:4, Insightful)
When you pay your workers as little as possible, they don't give a damn.
Walmart doesn't care (Score:3, Insightful)
Re:Doesn't add up (Score:3, Informative)
They probably returned the items without receipts. Many stores will give only store credit, or gift cards in the amount of the lowest sale price for the item when it is returned without a receipt. They still would have made money, and that would account for them having gift cards to sell.
Re:Doesn't add up (Score:2)
Re:Doesn't add up (Score:2)
Re:Doesn't add up (Score:2, Informative)
Is it that simple to make UPC codes? (Score:2, Informative)
Furthermore, Im suprised they werent caught earlier. Itd be pretty damn hard to get those past some sort of return. Hell, I took a DVD back to WalMart after Christmas and they wanted my drivers license number (
Re:Is it that simple to make UPC codes? (Score:5, Funny)
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.
Re:Is it that simple to make UPC codes? (Score:5, Insightful)
All you need is a barcode printer and some software which are publicly available for a few hundred dollars, like from these guys [idautomation.com]. Get a UPC number off a pack of chewing gum and put the sticker on a mountain bike. The hard part is finding a checker who won't notice. I can't figure out that one.
Re:Is it that simple to make UPC codes? (Score:5, Insightful)
I think the cashier would notice you paying for the plasma TV with a $5 bill. That's what differentiates dumb criminals, and the ones you don't usually find out about. You don't swap the code from a $1 item with 1 $3000 item. You take the sticker off a 17 inch lcd, and put it on a 19 inch one. I wouldn't even put the sticker on there permanently. It just has to be the first sticker the cashier sees. Once it's scanned, get rid of the evidence. Walmart is the perfect place to do this. They sell everything, and pay their people nothing, so the cashier will likely not have a clue what you are doing.
Re:Is it that simple to make UPC codes? (Score:2)
Re:Is it that simple to make UPC codes? (Score:2)
It's even simpler than that. (Score:5, Interesting)
I've wondered for years whether it would really be that easy to get away with switching UPCs just like this. I guess the answer is "pretty easy." Of course, if you get as greedy as these people did, you're obviously going to get caught before too long.
Re:It's even simpler than that. (Score:5, Informative)
Re:Is it that simple to make UPC codes? (Score:3, Insightful)
No barcode printer necessary. A regular run of the mill printer will print barcodes just fine. I did this a few years ago when I was archiving my media collection, some of the items didn't have a UPC printed on the case or media so I had to print my own. If I was able to print with an old canon bubbljet and read with a cheap (free actually) CueCat [wikipedia.org]
then I'm sure they could do the same.
"some software which are publicly available for a few hundred dollars"
There are se
Re:Is it that simple to make UPC codes? (Score:2)
Here's [labelmagic.net] one I've heard of.
Many bargain hunters print up a page of dozens of bar codes for various items. When watching for a price drop, they can enjoy checking prices on the scanners in store without having to go pick up each product. As long as you have the numbers printed below the bar code you can generate the bars easily. Sometimes fellow bargain hunters post specific bar code numbers in forum mes
Re:Is it that simple to make UPC codes? (Score:2)
Since the information is being processed by a computer anyhow, can't they prevent fraud by encrypting the information represented by the barcode? That would prevent people from simply printing up their own tags. Of course, they could look around the store for something with the price they want and copy that tag, but at least that would cost them an extra trip to the store. And this tactic could be dealt with by combining the price and product code information before encryption so that even if someone copie
Re:Is it that simple to make UPC codes? (Score:2)
Re:Is it that simple to make UPC codes? (Score:2)
Re:Is it that simple to make UPC codes? (Score:2)
especially easy if you know Perl...
It would be rediculously easy to take this, make it a CGI webpage, and publish it for the world to use.
Re:Is it that simple to make UPC codes? (Score:2)
I've been meaning to research this issue. When I print off coupons from the store's website, the checkers get annoyed with the fact they don't scan [inserts2online.com]. I know I can print off barcodes, but I don't have the same style barcode as UPC uses, I have something called 3 of 9 [state.mn.us]. The last time I looked into it software and fonts for anything like UPC required a massive licen
SNL (Score:2)
Oh, well. At least they weren't selling Bass-O-Matic '76s on the internet.
Will RFID help them out of this ?? (Score:2, Interesting)
Or will we all be able to do the same just from outside the store ??
idiots + crime = caught (Score:3, Insightful)
That's how they got caught. This was actually a fairly original idea; if they'd used it very sparingly, and only kept the items for themselves, they most likely would never have been caught at it. Most criminals' undoing is in not knowing when to stop.
Re:idiots + crime = caught (Score:4, Informative)
Nurse
Is your man secret? Did you ne'er hear say,
Two may keep counsel, putting one away?
Use similar items (Score:2, Insightful)
done in by greed (Score:3, Insightful)
the greatest enemy to a criminal or anybody on a power trip is himself
kid's play (Score:3, Insightful)
Fancier bells and whistles, but this is the same thing. It'll be interesting to see how they pulled off bilking one of the defining features of UPC codes which I didn't have to deal with: When scanned, the register should display a description of the product. The answer was probably lazy/unmotivated register drones. Some things never change.
Bebeep! (Score:5, Funny)
Too bad Re-code.com isn't still around! (Score:5, Interesting)
Finally they closed down because of pressure from walmart and huge legal fees needed to fight them.
But they got their point across, so I could see someone doing this quite easily. Now I'm wondering how they got caught.
I think the best thing to do it go to a walmart and just sticker random items, so that random people are buying the altered items.
There's a 10 min video on Re-code.com about the case. It's worth a quick viewing.
Seems like a way to say "I didnt put the sticker there!"
Self-checkout fraud possible (Score:5, Interesting)
Re:Self-checkout fraud possible (Score:3, Informative)
Re:Self-checkout fraud possible (Score:3, Insightful)
The jist of it was people didn't like it, so they came up with a plan to bet consumers used to it.
Enter self checkout.
The ones I use want to press my items against a yellow strip after I scan them. I don't.
If there damn infernal machine starts making noise, I don't stop on the way ot, either.
I am not a thief, and I will not prove my innocents.
I will defend it, however.
Just one more reason... (Score:2, Funny)
(Man I hope people are in good humor today.)
Let the buyer be aware! (Score:3, Interesting)
"Enterprising" students would run them thru keypunch machines [wikipedia.org] and make the number negative or add a decimal point.
These machines are also the origin of the "hanging chad". [wikipedia.org] Always check your input. Like the state of Florida, Walmart could have caught this by auditing returns.
Re:Let the buyer be aware! (Score:2)
I bet that the big RFID push they are making will help them do just that.
Why bother? (Score:3, Insightful)
HOWTO: print your own barcodes with linux (Score:5, Informative)
2) install a thermal label printer (the dymo 310 is nice)
3) install pbm2wxl if using dym310 (use google to locate)
4) type "apt-get install barcode"
5) run echo thebarcodenumber | barcode | lpr -Pdym310
6) when the local law enforcement agencies come knocking on your door claiming that the GNU barcode program is illegal and subversive software, RUN LIKE HELL!
Shady, but probably legal (Score:5, Interesting)
Of course, ethically it is wrong, but legally, it's not done yet.
Comment removed (Score:4, Informative)
Re:Shady, but probably legal (Score:3, Informative)
In the same direction.... (Score:3, Insightful)
Then if I present an item to the cashier, and it scans a price higher than the posted price, is Wal-Mart guilty of stealing from me?
Doesn't seem like they should be able to have it both ways. How is swapping bar codes to get a lower price any different than "accidentally" entering a higher price for a particular barcode into the dat
Re:In the same direction.... (Score:3, Insightful)
Aristotle described the core of the distinction long ago: intention. If you as a customer swap barcodes in a store your goal is clearly (usually) to sneak a higher price item for a lower price. You are misrepresenting the transaction to get take advantage of someone/thing else. If some retailer makes an error in pricing they are not necessarily intentionall
Re:Shady, but probably legal (Score:5, Insightful)
By replacing the barcode, you are not saying "I will pay $5 for this microwave oven", you are saying "This microwave oven is a bottle of soda".
I suppose the same argument could apply -- the customer service representative agrees that the oven is a bottle of soda -- but you can't argue that you are offering a lower price for the item because barcodes identify what an item is and not how much an item costs.
Re:Shady, but probably legal (Score:3, Insightful)
A smart [read: not greedy] thief would do their homework first and put an $80 microwave barcode on a $120 microwave model. The text that displays would be very brief, displaying Microwave Oven or something similar, and would not trigger suspicion with an attentive cashier.
Social observation shows that this type of self-restraint is rarely found among criminals.
Re:Shady, but probably legal (Score:4, Insightful)
No. A barcode isn't just a price, but a code representing an item, which in the cashregister is linked to a price.
If you put the barcode from a pack of chewinggum on a mountainbike, the barcode still represents the offering of gum at $0.77, and that is the offer the contract is concerning. The fact that you are carrying a $300 bike out of the store is just theft.
Burger King and Super Mario (Score:5, Funny)
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. =)
The Decay of Trust (Score:3, Interesting)
The return system would not be difficult to game at small scales, if you were untrustworthy. It's unfortunate, but true. The truly unfortunate fact is that a small set of people can game the system so much that companies are disuaded from offering returns, except as required by law, and making them as painful as possible. This has already happened, to a large ex
Re:Burger King and Super Mario (Score:3, Funny)
LOL! I bet it was like my brother's when he found no toy in his Kinder egg.
Why was there no toy in his Kinder egg? Because I got home from school before him, carefully opened the foil, cut the chocolate shell along the seams with a sharp knife and removed the toy. A simple matter of soldering the chocolate back together with hot tea and replacing the foil and voila - one kid roaring his eyes out.
Retailers use this for competitive pricing... (Score:5, Interesting)
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!
Re:Retailers use this for competitive pricing... (Score:3, Interesting)
You probably don't even have to get an employee involved, since a lot of larger stores (Target for instance) have barcode scanners set out specifically for the customers to do their own price checks.
Print off a list of all the products you want to check, and take care of it in one trip.
Old News (Score:3, Interesting)
Wondering aloud (Score:3, Interesting)
And where the hell did that 1.5 million come from? Did the crooks still have 1.5 million worth of stolen stuff in their home? Did the have a nice detailed spreadsheet of everything they'd ripped off since day one? Or did somebody at Wal-Mart just pull a number out of the air?
At Home Depot, the cashiers just don't care (Score:3, Insightful)
The cashier just looked at the entire mess of items with disgust and ended up tossing every part into a bag regardless of whether or not it scanned on the first try. For what was supposed to be $300 - $350 in parts, I ended up paying around $180 for.
If you don't pay your employees enough to care, you're gonna have losses.
Somehow I'm not surprised at quite a few responses (Score:5, Insightful)
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.
Re:Somehow I'm not surprised at quite a few respon (Score:4, Interesting)
Do I have the resources to do UPC label creation and swaping. What I don't already have at home I can easily pick up at a local office max, or office Depot. Possibly even at the very stores mentioned in the article.
I look at the responses earlier in the listing as "Idiots, if you are going to do this, you need to do it this way..."
If I were to decide to use UPC relabling at Best Buy to get that great new 42" LCD HDTV, I would visit first, find a manufacture with both a 42" LCD HDTV, and a 35" LCD HDTV, write down the UPC for that 35" edition, go home print up an approprieate sized copy of that to overlay the UPC on the 42" edition, then during a busy time at Best Buy, go in, put the 42" set on a cart, go stand in line, and while waiting in line discreatly overlay the UPC.
Now note I began that with 'If I were to decide..' I honestly have no interest in doing this. I may like the idea of having a 42" LCD HDTV, but I happen to have worked for the stuff I own, and I have no interest in changing that.
I don't have a justification for such an action, as I have no interest in performing the action. That doesn't mean that I can't participate in the thought experiment, or write about what I know about the topic in question.
-Rusty
Re:Somehow I'm not surprised at quite a few respon (Score:3, Interesting)
You see, there's this thing called the Social Contract. It isn't written anywhere, but we all ascribe to it, not because we want to, but because society would fall apart without it.
Of course, we are not perfect, so we bend the Contract on occasion. People do it by shoplifting, or pilfering, or swapping barcode labels. Companies do it by outsourcing, or denying valid insurance claims, or bullying employees into voting against u
Someone tried this with me once... kind of. (Score:5, Informative)
More on topic, this was something that was part of the training. they taught us how to find fake pricetags, hidden items (carabiners in shoes, tents in backpacks, etc.), and a whole bunch of other tricky stuff. It goes to show that if you don't pay for good training up front, you'll pay for it later.
Re:relapse (Score:2, Informative)
Re:it can be done... (Score:3, Interesting)