How Thieves Scam A Self-Checkout System

Estimated reading time: 9 minutes

Self-checkout system scams are on the rise, and stores are deploying more personnel to ensure that nothing leaves without payment.

Discover the growing prevalence of self-checkout system scams and their implications for retailers and employees.

Are customer service jobs at risk?

The self-checkout system, an automated cashier in many stores across Canada, still allows thieves to cheat, driving up prices.

Some stores are going as far as installing in-and-out railing systems, receipt checkout before leaving, and security guards.

Today, I want to review how consumers are scamming the self-checkout system and the implications of these actions.

Cheating The Automated Cashier

Should customer service workers worry about shifts in the job market with more stores introducing self-checkout systems?

I believe so because the more we automate, the less we will need human interaction. However, customers will often opt for a traditional checkout with a cashier over technology.

Will self-checkout systems replace jobs as technology advances and the cost-cutting and increased minimum wage pressures affect consumers and retailers?

We may soon see self-checkout systems appear everywhere, including at pharmacies.

Questions upon questions can only be answered as time goes on, not only from the customer and employee perspectives, but also from the companies that introduce the self-checkout system.

If keeping costs lower is the name of the game for a company, they will likely do so, especially if that means lower costs for the consumer. Most often, this is just a dream, but noteworthy.

Stores with self-checkout systems seem to be increasing in Canada, with Walmart, Home Depot, and almost every grocery store following suit.

With the rise in minimum wage topping $15 in Ontario, we hear more shops aim to offset costs by introducing self-checkout.

Last week, Dollarama explained that it plans to trial self-checkout systems in response to the wage increase.

Giving Customers Control

It doesn’t matter where we go; technology has enabled consumers to take the front row when ordering and paying.

Walk into almost any grocery store, and you’ll find self-checkout systems, virtually unheard of back in the ’70s and early 80’s.

A would-be shoplifter would more likely scam the self-checkout systems just to save money.

Sometimes, shoplifters who can’t get their high from shop floor stealing look for alternative ways to obtain the product they want.

Related: Should using the self-checkout qualify you for a discount?

Self-checkout systems were introduced to consumers by David R. Humble, who invented them, also known as a semi-attended customer-activated terminal, SACAT, where customers can cash out with limited interaction, if any, with a cashier.

As of 2013, there were 191,000 self-checkout units worldwide, and the number was estimated to reach 325,000 units by 2019.

David R. Humble got the idea as he stood in a long grocery checkout line in south Florida in 1984.

Self-checkout systems are designed to empower consumers to take charge of their orders and, in many cases, facilitate faster service as a result.

Although this isn’t always the case, there will always be some customers who prefer a cashier and others who like the self-checkout systems.

Some customers love using the self-checkout system because they find it enjoyable or something they’ve always wanted to try, but never had the opportunity to do as a cashier.

It’s a great way to test if you’re interested in applying for a cashier job with limited customer interaction. It’s more on an as-needed basis.

A Walmart near me has a sizeable self-checkout system that always seems to be bustling with customers every time we visit.

I often wondered if customers are scamming the self-checkout system like they were back in the UK because it can happen, and it does.

Self-Checkout System Thieves Find Cheating Ways

How are these self-checkout system thieves getting away with their elaborate plans to pay less or nothing for items and not get caught?

This is a significant question that retailers have long sought to answer, which is why the self-checkout system has undergone improvements over the years.

With the addition of self-checkout system service desks and one employee assigned to monitor each self-checkout system, they can keep an eye on what is happening.

The problem is that it can be challenging if the employee is not trained as a security scanner.

When you enter a casino, security staff are trained specifically to do this for a living.

Cashiers at the grocery store have to deal with a wide range of issues.

In many cases, cashiers are away from their computers, which is when thieves can take advantage and escalate their activities.

It sounds ridiculous, but people will do it, and it’s not just customers who struggle to make ends meet; it’s also not just those who are financially struggling.

When there is an opportunity to steal, it doesn’t matter how much money someone has in the bank.

It’s an ethical decision.

If someone believes they can get away with something, they might try it.

What they may not consider until after the fact is the consequences.

Self-Checkout System Scammers

Some ways that would-be self-checkout system scammers skip the system are not advanced.

I read a story about a lady who admitted to photocopying bar scan codes and pasting them on less expensive products when scanning.

The Queensland Times reports 35-year-old Kylie Milner of Ipswich orchestrated a somewhat labour-intensive plot, in which she photocopied the bar-codes from 65c and 72c packets of two-minute noodles, which she then printed and glued to sticky labels.

She walked away with over $ 4,500 worth of groceries from Coles and Woolworths.

What an intelligent yet ignorant idea to land someone in jail.

I’ll admit I tested the incorrect product code in the UK earlier this year out of curiosity, and sure enough, I could do this on produce.

I removed the product and started again because there was no way I’d go to jail for this scam. I’m also not sure “just a joke” would have worked.

If I could do it that easily, I know that anyone could; however, this is not new, as it has been happening since the introduction of this self-service system.

The stores are aware of the issue and have installed cameras and elaborate computer systems for the on-site cashier, but humans aren’t perfect.

Even cashiers make this mistake when they don’t know what produce is coming through and either ask the customer what it is or guess.

I caught errors and had to tell the cashier the product so I wasn’t charged more than I should have paid.

Then, some customers lie and say the product is something else when it’s not, and the cashier believes them and keeps going.

Restrictive Self-Checkout

Restrictive self-checkout systems with product limits may be another option to move customers through quickly.

Consider it the drive-thru grocery shopping system.

It is not click-and-collect, but a system where customers do the work, yet get it done more quickly because of product amount restrictions.

This may be enticing, but not everyone wants to switch to the self-checkout system, especially when prices keep increasing, cashiers are losing their jobs, and no one wants to do the work.

Self-Checkout System Advantages And Disadvantages

Self-checkout system problems are equally frustrating, if not more of a time waster than simply using a cashier, but not everyone cares.

Some people prefer to avoid the cashier and opt for cashing out independently.

However, with this self-checkout system, there are pros and cons that every consumer should be aware of.

Self-Checkout System Pros

• You’re in control, so if you move fast, you get out fast
• There are more than one or two self-checkout systems in operation.
• Less human interaction
• You get to bag as you wish

Self-Checkout System Cons

• If you get stuck behind a slow customer, you’re doomed
• Using coupons can be a pain
• In most cases, reduced products have to be handled by the self-checkout customer service.
• You can’t find the product you need
• System failure
• You only have yourself to blame if you mess it all up

Overall, the self-checkout system is likely to remain in place unless it becomes too costly for the company.

Thieves working through the grocery store system on and off the floor can be taxing, and customers flip the bill.

During a recent Facebook discussion, a Canadian Budget Binder reader, Adeline, inquired about the upfront costs associated with retailers purchasing the self-scanner system.

A CBB reader provided a reasonable response regarding why these investments were suitable.

Yes and no. Yes they are expensive, but even if they paid $20,000 or $30,000 for them, it would save them roughly $52,000 in salaries in just the first year.

That is assuming somebody working the same cash register for about 12 hours a day, 364 days a year at about $12 an hour wage.

The higher the minimum wage, the more they save.- Thad T.

Knowledge is vital, so this isn’t a post to help scammers. It’s more of an awareness post of what is going on.

Although upfront costs are expensive for the self-checkout system, they are quickly recouped through the reduced workforce.

Cheating and stealing can get you arrested, and it’s not worth it, so if you plan to cheat the self-checkout system, think about the consequences first.

Mr. CBB

September Grocery Game Challenge

Join in the 2017 Grocery Game Challenge (GGC) fun and post your grocery shop in the comment section of each GGC blog post.

New monthly prize: See the Grocery Game Rules

• The Ultimate Pantry Essentials For Fall Cooking

2017 Grocery Shop Results

Yearly grocery budget for two + 1 Toddler 2017: $3180 or $265/month (The above total does not include the stockpile budget of $300/year or $25/month.Points Overview (add any other sections you need to show us your savings)

• Total Grocery Budget for this Month: $265
• Total Grocery Budget with any carry-overs: $265
• Total Gift Cards used to date: $0
• Total Rewards Points redeemed this week: $0
• Total Rewards Points used to date: $0
• PC Points PluP.C.Earned to date: 646,000
• Scanning Code of Practice (SCOP) to date $0
• Shoppers Optimum: 983,000 O.M.G

Coupon O.M.G.(add any other apps you use to save money)

• Zweet to cash out: $18.25.
• Checkout51 to cash out: $24.50 we cashed out, so we’re back at zero.

Our Grocery Shop This Week

Zehrs

• E.D Smith Sugar-Free Syrup $3.29
• 3 x Large eggs $1.97 each
• Salted Butter No Name $3.97
• Nordica Cottage Cheese $1.99
• Astro coconut yogurt $2.99
• Iceberg Lettuce $1.29
• PC White Mushrooms $1.99
• PC Broccoli Slaw $3.89-50%  $1.95
• Bananas $0.96
• Celery stalk $1.29
• 4 x Yellow Zucchini $3.62-50% $1.81
• Liquid sweetener 2 x $4.94-50% $2.50
• 3 x English cucumbers $0.99 $2.97
• Romaine $1.47
• Specialty grapes reduced $0.99
• 3 x Chicken Breakfast Sausages $5.79-50% $8.68
• Smoked Gouda $20-50% $10
• Asiago $8.62 on sale and a great deal for the real stuff.
• Salami Whips $6.00

Total Out-of-pocket $ 68.58 

All totals below have already been tax factored into them.

• Total to spend this month: $265- $18.51= $246.49 (overage from August)
• Stockpile budget 2016: $25.00/month
• Stockpile budget used this month: $25.00
• Total coupons used this week: $0
• Total coupons used to date: $1
• Total in-store discounts this week: $0
• Total in-store discounts to date: $675.93
• Total spent this week: $68.58
• Total spent so far this month: $153.06
• Total Over/Under spend this shop: Over
• Total Over/Under spend for the month: Under
• Total left to spend for the month: $93.43
• Total Spent To Date 2017: (does not include stockpile budget) Jan $231.06+Feb $255.16+March ($5 budget increase) $263.60 + April $273.83+ May $257.15 + June $65.43+July $226.84+August $283.51+September $

Weekly Overview

It was not too bad of a shop as we picked up some black sticker deals, a.k.a pink sticker deals, and flyer deals that we took advantage of.

The Asiago cheese was almost half the price, so it was hard to pass up the real thing.

With just under $100 left to spend this month, we may be on track to meet our budget.

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