Barcode Security Systems releases ‘TCAT’ to solve retail return fraud

David Cox, founder of bar code security systems (BCSS), has announced the release of TCAT http://www.tcat4safereturns.com/ and a strategic partnership with RSI ID Technologies, an ISO 9001-2000 certified San Diego based technology provider. The partnership aims to eliminate the $15Billion return fraud problem for retailers.
According to the National Retail Federation, over $60 billion worth of merchandise was returned in 1997, resulting in losses (in transaction costs and merchandise liquidation) of $10-15 billion. Inventory shrinkage and fraudulent retail practices are the single largest category of larceny in the United States, more than motor vehicle theft, bank robbery and household burglary combined. Many retailers have difficulty verifying that a merchandise item was sold at one of their stores.  Retailers are often times deterred from placing store labels on products as consumers have demonstrated reluctance to purchase items as gifts when the product carries excessive printing.
Point-of-sale data mining software solutions detect potential theft problems at the cash register and alert appropriate personnel in real-time, but these current systems are ineffective at stopping fraudulent returns. Bar Code Security Systems’ TCAT (to catch a thief) detects whether products that are returned for store credit or exchange have been paid for.
‘If it hasn't been paid for TCAT will know immediately,’ says  David Cox, CEO, BCSS. ‘We are also introducing the online return solution that will allow retailers to identify the warehouse that the merchandise has come from.  So when a customer returns it back to the store they will receive store credit, exchange, or will be able to put the money back on their credit card.’ 
The present invention provides a system and method for verification of the purchase of a retail items. An encoding device provides a machine-readable post purchase indicia on the label of retail items at the point of sale.  When returning retail items for a refund and/or exchange the Barcode Security Systems TCAT detecting device will analyze the label for the presence of the post-purchase indicia. 
Presence of the post-purchase indicia indicates a legitimate exchange whereas the absence of the post-purchase indicia signifies a fraudulent exchange.