Normally I write about scams and frauds you need to watch out for and avoid like one of the ten plagues. But after receiving numerous e-mails from readers regarding a "Cash Back" scam going on at local retail outlets, I thought I'd switch gears and debunk a scam rather than warn you about one. Why? Because I don't want to be the one standing in line an extra 20 minutes waiting to check out while you act like Sherlock Holmes and scrutinize your receipt for fraud.
OK, the scam is supposed to go like this: You go into your favorite store and fill up your shopping cart with all kinds of goodies. The cashier rings everything up, you run your debit card through the little machine in front of you, the machine asks if you want cash back, you hit the NO button and you leave with receipt in hand, munching on the candy bar you impulsively bought because it was right there staring at you (that last part is how I do it, maybe not you).
You get home and as you are unpacking the groceries you glance at your receipt and lo and behold there at the bottom it says you requested $20 cash back. You distinctly remember pressing NO and you certainly don't have an extra twenty in your pocket. Elementary, my dear Watson -- the cashier did it!
Only according to the IT expert I contacted, who writes and runs the programs for one of Traverse City's major retailers, it is virtually impossible for the above scenario to happen. Now any IT expert worth his or her salt knows that there are some pretty smart hackers out there and any system could be beaten if they try hard enough. So can they conclusively state that they are 100 percent certain this couldn't happen? No, but that being said this scam would take an awful lot of effort to make it work for a fairly small payoff.
According to JB, their system is totally customer driven. The client controls the key pad from their side of the counter. The cashier has no control whatsoever. For the most part the cashier never even sees the pad or the numbers the customer punches into the machine. So unless the cashier is some computer genius who rigged his or her station or a contortionist who can bend themselves in such ways that they can look over your shoulder while you tap the key pad to steal your information, there's no way for this scam to be true.
The origins of this scam date back several years, always with the same big box store at different locations around the country. First time it hit the Internet it was about a $10 surcharge found on the receipt from their gas station. Now not to get too political, the Internet is a very powerful tool and many people who read something on it automatically believe it to be true. The box store in question has many critics. So is it possible that these "cash back" scams were started by those who wish to discredit this particular establishment in an effort to get people to stop shopping there? In a word, "Yes."
There is a strong possibility that this reported scam was placed on the Internet by people whose social agenda is one in which the disruption of this retailer's operations is number one on their list. I'd still check my receipt to make sure it's correct.
But knowing this "cash back" scam can't happen I'm sure we can move the line faster so I can get to my candy bar.
Fred L. Goldenberg is a Certified Senior Advisor and the founder of Senior Benefit Solutions, LLC, a consumer and financial services organization in Traverse City. Questions or comments about this column or any senior issue can be directed to 231-922-1010 or www.srbenefitsolutions.com
Obama Scraps Birth Control Mandate
US Airmen's Killer Sentenced to Life in Germany
Navy Names Ship for Gabrielle Giffords
Raw Video: Deadly Blasts in Syria
Romney Slams President Obama at CPAC
Gingrich: Pres. Obama 'waging War on Religion'
5 Killed in Wrong-way Crash on I-10 in La.
Uzbek Man Pleads Guilty in Plot to Kill Obama
Denver's Largest-Ever Drug Bust Nets Dozens
Marines: No Punishment for Nazi-like Flag
Vets Look to Translate Military Skills Into Jobs
Raw Video: School Bus Burst Into Flames
LA School Reopens Amid Sex Abuse Scandal
$25B Settlement Reached Over Foreclosure Abuses
Pentagon: Allow Women Closer to Front Lines
LA School in Sex Abuse Scandal Reopens
Raw Video: Italy's Mount Etna Bursts Into Life
Greeks March; Angry Despite Debt Deal
Air Force Airlines: Leaders Get Polished Service
Ga Girl Fights Off Kidnapper at Walmart
