Fraud and Fraud Detection: A Data Analytics Approach, + Website

CHAPTER 16 Zapper Fraud

THE BASIC CASH REGISTER has evolved into electronic cash registers and now to computerized point-of-sale (POS) systems. Point-of-sale systems are typically attached to a computer that may include a cash drawer, receipt printer, and a credit or debit card terminal. Many systems have touch screens to simplify information entry and may have a barcode scanner or even be complemented with a radio frequency identification (RFID) reader. Weighing scales may also be attached for use in certain types of stores, such as grocery stores. POS systems can integrate with accounting modules and inventory systems. If the inventory module is utilized, the business’ inventory control is the POS system. Since sales are recorded in real time, inventory records are immediately updated.

POS systems provide a wealth of information relevant to operating the business efficiently. Sales data can be analyzed so that inventory replacement and levels can be adjusted accordingly. Sales histories can provide trends to influence purchasing decisions. Accuracy is significantly improved with the POS system, in terms of charging correct sale prices and related payments by customers. Cash received from customers is better controlled to prevent theft as POS systems provide information and audit trails to trace or isolate any problems.

Traditionally, retailers and those in the hospitality industry predominantly used POS systems. Today, you will find many industry-specific POS packages, including ...