I went into sleuth mode thinking through the m.o. of the SAP executive who is alleged to have pasted fraudulent barcodes on LEGO toys at Target stores in California. Did the cashiers not notice the description of the items on the receipt were different from the items? Were there any self check-out lanes in those stores? Does Target not segregate the payment from the delivery step for high valued or bulky items as some other stores do?
While the detailed steps probably varied, this arrest warrant from Montgomery County, PA in November 2011 describes a similar operation against Target stores in a different part of the country. It involves similar UPC tampering on Dyson vacuums and Bose speakers in addition to Lego sets. The eBay sale process of those items under assumed names and the money laundering of the proceeds is even more elaborate.
I was amazed at the complexity of the theft – seems like a lot of work and risk for a net gain of $ 50 or $ 100 on an item. I was also impressed at how much technology they likely used to decide which items to target, the UPC code home printing (good quality to not attract attention), the eBay sale process, the payment laundering. In reverse, get a feel for the technology Target and the banks and law enforcement used - Target’s surveillance tapes, the POS data analysis, the identity tracking (driver’s license etc) and money trail analysis. For more elaborate and much less sophisticated similar scams read this article here.
I post this on my innovation blog with a sense of awe. Not because I condone such crimes, but to reflect how much more complex “shop lifting” and its investigation have become.
Picture of UPC Code I generated using this site for a package of Ramen noodles. Retail value = 12c. Seriously high value :)
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