After Chip And PIN Is Deployed, What Will The Next Security Challenge Be?

By Angela Mansfield-Swanson, Director of Corporate Marketing, CognitiveTPG

Two women caught on surveillance cameras are questioned for alleged receipt fraud. Sources say the women entered the store together, one left with the purchased goods and an original receipt while the other approached a staff member stating she had not received a receipt for her transaction. The duplicate receipt was printed and the women used both receipts to claim a refund. 

Fraud schemes like this affect nearly every retailer. According to the National Retail Federation, retailers lose $8.9 billion per year to retail fraud and it’s predominantly related to cash receipts. Even though receipt fraud has existed for years, it has become more sophisticated as technology has advanced.  These culprits can come in the form of individuals or organized retail crime groups.  Either way, both parties understand that retail fraud is very profitable. They bring the stolen merchandise back to the store with a fraudulent receipt, receiving full value for the item plus sales tax, netting them 106-108 percent on the item compared to the 30-70 percent of retail value they would make on selling the item on the street or the Internet. 

Please log in or register below to read the full article.