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Inside Schnucks’ Approach to Stopping Gift Card Fraud | Fast Five Shorts · Omni Talk Retail

• 0:00
  Snook
• 0:00
  Markets
• 0:01
  is
• 0:01
  seeing
• 0:01
  some
• 0:01
  absolutely
• 0:02
  incredible
• 0:02
  results
• 0:03
  in
• 0:03
  preventing
• 0:04
  gift
• 0:04
  card
• 0:05
  fraud.
• 0:05
  In
• 0:05
  a
• 0:05
  10
• 0:06
  store
• 0:06
  pilot,
• 0:07
  according
• 0:07
  to
• 0:07
  Chain
• 0:07
  Storage,
• 0:08
  the
• 0:08
  regional
• 0:08
  grocery
• 0:09
  chain
• 0:09
  deployed
• 0:10
  the
• 0:10
  new
• 0:10
  Digimarc
• 0:10
  Corp.
• 0:11
  End
• 0:11
  to
• 0:11
  end
• 0:11
  gift
• 0:11
  card
• 0:12
  security
• 0:12
  solution
• 0:13
  in
• 0:13
  10
• 0:13
  Snook
• 0:14
  stores
• 0:14
  in
• 0:14
  the
• 0:15
  St.
• 0:15
  Louis
• 0:15
  area
• 0:15
  for
• 0:15
  a
• 0:16
  10
• 0:16
  week
• 0:16
  period.
• 0:17
  With
• 0:17
  100%
• 0:18
  of
• 0:18
  Digimarc
• 0:19
  protected
• 0:19
  gift
• 0:19
  cards
• 0:20
  activated
• 0:20
  successfully
• 0:21
  and
• 0:21
  no
• 0:22
  reported
• 0:22
  fraud
• 0:22
  on
• 0:23
  any
• 0:23
  cards
• 0:23
  secured
• 0:24
  by
• 0:24
  digimarc.
• 0:25
  If
• 0:25
  the
• 0:25
  scanner
• 0:26
  detected
• 0:26
  any
• 0:26
  evidence
• 0:27
  of
• 0:27
  tampering,
• 0:27
  the
• 0:27
  gift
• 0:28
  card
• 0:28
  wouldn't
• 0:28
  activate
• 0:29
  stock
• 0:29
  stopping
• 0:29
  fraud
• 0:30
  before
• 0:30
  it
• 0:30
  reached
• 0:31
  customers.
• 0:31
  Scan
• 0:32
  cards
• 0:32
  with
• 0:32
  untampered
• 0:33
  watermarks
• 0:34
  activated
• 0:35
  instantly.
• 0:36
  Specific
• 0:37
  store
• 0:37
  level
• 0:37
  results
• 0:38
  of
• 0:38
  the
• 0:38
  pilot
• 0:38
  included
• 0:39
  almost
• 0:39
  9
• 0:40
  and
• 0:40
  10.
• 0:40
  87%
• 0:41
  of
• 0:41
  cashiers
• 0:42
  and
• 0:42
  pilot
• 0:42
  stores
• 0:42
  said
• 0:43
  that
• 0:43
  cards
• 0:43
  protected
• 0:43
  by
• 0:44
  the
• 0:44
  Digimarc
• 0:44
  solution
• 0:44
  activated
• 0:45
  as
• 0:45
  fast
• 0:46
  or
• 0:46
  faster
• 0:46
  than
• 0:46
  traditional
• 0:47
  gift
• 0:47
  cards,
• 0:48
  resulting
• 0:48
  in
• 0:48
  faster
• 0:49
  checkout.
• 0:50
  Cashiers
• 0:50
  also
• 0:51
  said
• 0:51
  they
• 0:51
  no
• 0:51
  longer
• 0:51
  needed
• 0:52
  to
• 0:52
  open
• 0:52
  complex
• 0:53
  packaging
• 0:53
  or
• 0:53
  examine
• 0:54
  gift
• 0:54
  cards
• 0:54
  for
• 0:54
  fraud,
• 0:55
  which
• 0:55
  further
• 0:55
  streamlined
• 0:56
  checkout.
• 0:57
  No
• 0:57
  training
• 0:58
  was
• 0:58
  needed
• 0:59
  for
• 0:59
  customers
• 0:59
  at
• 1:00
  self
• 1:00
  service
• 1:00
  checkout
• 1:01
  and
• 1:01
  there
• 1:01
  was
• 1:01
  no
• 1:02
  impact
• 1:02
  to
• 1:02
  any
• 1:02
  other
• 1:02
  workflows
• 1:03
  or
• 1:03
  processes
• 1:04
  in
• 1:04
  stores
• 1:04
  or
• 1:05
  the
• 1:05
  supply
• 1:05
  chain.
• 1:06
  Chris,
• 1:06
  what
• 1:07
  do
• 1:07
  you
• 1:07
  think
• 1:07
  of
• 1:07
  the
• 1:07
  gift
• 1:07
  card
• 1:08
  use
• 1:08
  case
• 1:08
  for
• 1:09
  invisible
• 1:10
  watermarks?
• 1:11
  And
• 1:12
  I
• 1:12
  love
• 1:12
  this
• 1:12
  use
• 1:12
  case.
• 1:13
  We
• 1:13
  pride
• 1:13
  ourselves
• 1:14
  on
• 1:14
  this
• 1:14
  show
• 1:14
  of
• 1:15
  scouring
• 1:15
  the
• 1:15
  headlines
• 1:16
  each
• 1:16
  and
• 1:16
  every
• 1:16
  week
• 1:16
  and
• 1:16
  pulling
• 1:17
  out
• 1:17
  what
• 1:17
  we
• 1:17
  think
• 1:17
  is
• 1:18
  immediately
• 1:18
  applicable
• 1:19
  to
• 1:19
  everyone.
• 1:19
  And
• 1:19
  this
• 1:20
  is
• 1:20
  one
• 1:20
  of
• 1:20
  those
• 1:20
  headlines
• 1:20
  that
• 1:21
  meets
• 1:21
  that
• 1:21
  grade
• 1:21
  100%.
• 1:23
  The
• 1:23
  results
• 1:24
  you
• 1:24
  mentioned,
• 1:24
  I
• 1:24
  mean
• 1:24
  they
• 1:25
  speak
• 1:25
  for
• 1:25
  themselves.
• 1:26
  Basically
• 1:26
  zero
• 1:27
  fraud
• 1:27
  over
• 1:28
  10
• 1:28
  weeks.
• 1:29
  That's
• 1:29
  just
• 1:29
  incredible.
• 1:30
  Like
• 1:31
  that's
• 1:31
  gobsmacking.
• 1:32
  Stop
• 1:32
  you
• 1:32
  in
• 1:33
  your
• 1:33
  tracks,
• 1:34
  digest
• 1:34
  like
• 1:35
  it's
• 1:35
  just
• 1:35
  nuts.
• 1:36
  So,
• 1:36
  and
• 1:36
  if
• 1:36
  you
• 1:36
  want
• 1:37
  to
• 1:37
  go
• 1:37
  down
• 1:37
  a
• 1:37
  rabbit
• 1:37
  hole,
• 1:37
  listeners
• 1:39
  look
• 1:39
  up
• 1:39
  on
• 1:39
  YouTube
• 1:40
  all
• 1:40
  the
• 1:40
  links
• 1:41
  people
• 1:41
  will
• 1:41
  go
• 1:42
  to,
• 1:43
  to,
• 1:43
  to,
• 1:44
  to,
• 1:45
  to
• 1:45
  fraud
• 1:45
  people
• 1:46
  with
• 1:46
  gift
• 1:46
  cards,
• 1:46
  you
• 1:47
  know,
• 1:47
  and
• 1:47
  like
• 1:47
  I
• 1:48
  remember
• 1:48
  my
• 1:48
  buddy
• 1:48
  Dave
• 1:48
  Stack
• 1:49
  telling
• 1:49
  me
• 1:49
  about
• 1:49
  like
• 1:50
  people
• 1:50
  put
• 1:50
  these
• 1:50
  in
• 1:50
  microwaves
• 1:51
  to
• 1:51
  get
• 1:51
  the
• 1:51
  little
• 1:51
  like,
• 1:52
  you
• 1:52
  know,
• 1:52
  things
• 1:52
  that
• 1:53
  you
• 1:53
  scratch
• 1:53
  off
• 1:53
  to
• 1:53
  get
• 1:54
  them
• 1:54
  to
• 1:54
  peel
• 1:54
  off
• 1:54
  easily
• 1:55
  and
• 1:55
  then
• 1:55
  they
• 1:55
  have
• 1:55
  replacement
• 1:56
  stickers
• 1:56
  that
• 1:56
  they
• 1:57
  can
• 1:57
  put
• 1:57
  on
• 1:57
  them
• 1:57
  and,
• 1:58
  and
• 1:58
  that's,
• 1:58
  and
• 1:58
  then
• 1:58
  that's
• 1:59
  essentially
• 1:59
  what
• 1:59
  they
• 1:59
  do.
• 2:00
  They
• 2:00
  get
• 2:00
  the
• 2:00
  codes,
• 2:00
  they
• 2:01
  put
• 2:01
  them
• 2:01
  back
• 2:01
  on
• 2:01
  the
• 2:02
  shelves,
• 2:02
  then
• 2:02
  they
• 2:02
  wait
• 2:03
  for
• 2:03
  some
• 2:03
  unsuspecting
• 2:04
  dupe
• 2:04
  to
• 2:04
  come
• 2:04
  in,
• 2:05
  activate
• 2:05
  the
• 2:05
  card
• 2:05
  and
• 2:05
  then
• 2:06
  all
• 2:06
  of
• 2:06
  a
• 2:06
  sudden
• 2:06
  they
• 2:06
  steal
• 2:06
  the
• 2:06
  money.
• 2:07
  So
• 2:08
  that's
• 2:08
  what's
• 2:08
  nuts
• 2:09
  about
• 2:09
  this.
• 2:09
  Digimark's
• 2:10
  invisible
• 2:10
  barcode
• 2:11
  essentially
• 2:11
  works
• 2:11
  to
• 2:12
  prevent
• 2:12
  all
• 2:12
  of
• 2:13
  that
• 2:13
  type
• 2:13
  of
• 2:13
  activity
• 2:14
  from
• 2:14
  happening.
• 2:14
  It's
• 2:15
  stellar
• 2:15
  tech
• 2:16
  and
• 2:16
  it's
• 2:16
  a
• 2:16
  stellar,
• 2:17
  stellar
• 2:17
  use
• 2:18
  case
• 2:18
  of
• 2:18
  invisible
• 2:19
  watermark
• 2:19
  technology,
• 2:20
  in
• 2:20
  my
• 2:20
  opinion.
• 2:21
  Yeah,
• 2:22
  I
• 2:22
  think
• 2:22
  the
• 2:22
  Other
• 2:23
  part
• 2:23
  too
• 2:23
  that
• 2:23
  I'd
• 2:23
  add.
• 2:23
  I
• 2:24
  agree,
• 2:24
  Chris.
• 2:24
  You
• 2:24
  know,
• 2:25
  they're
• 2:25
  also
• 2:25
  building
• 2:26
  on
• 2:26
  top
• 2:26
  of
• 2:26
  an
• 2:26
  existing
• 2:27
  technology
• 2:28
  that
• 2:28
  Schnooks
• 2:28
  has
• 2:29
  already
• 2:29
  invested
• 2:29
  in,
• 2:29
  which
• 2:30
  I
• 2:30
  think
• 2:30
  is
• 2:30
  a
• 2:30
  really
• 2:32
  noteworthy
• 2:32
  thing
• 2:33
  to
• 2:33
  call
• 2:33
  out
• 2:33
  here.
• 2:33
  They're
• 2:34
  already
• 2:34
  using
• 2:34
  digimark's
• 2:35
  invisible
• 2:36
  barcodes
• 2:36
  for
• 2:37
  a
• 2:37
  lot
• 2:37
  of
• 2:37
  their
• 2:37
  bulk
• 2:37
  items.
• 2:38
  And
• 2:38
  I
• 2:39
  think
• 2:39
  for,
• 2:39
  you
• 2:40
  know,
• 2:40
  all
• 2:40
  of
• 2:40
  the,
• 2:41
  the
• 2:41
  tech
• 2:41
  companies
• 2:41
  and
• 2:42
  tech
• 2:42
  partners
• 2:42
  out
• 2:43
  there
• 2:43
  listening
• 2:43
  like
• 2:44
  this
• 2:44
  is
• 2:44
  a
• 2:44
  great
• 2:45
  case
• 2:45
  study
• 2:45
  in
• 2:46
  how
• 2:46
  you
• 2:46
  continue
• 2:47
  to
• 2:47
  develop
• 2:47
  your
• 2:48
  existing
• 2:48
  relationship
• 2:49
  with
• 2:49
  your
• 2:49
  clients.
• 2:50
  You
• 2:50
  listen
• 2:51
  to
• 2:51
  what
• 2:51
  their
• 2:51
  needs
• 2:51
  are.
• 2:52
  What,
• 2:52
  what
• 2:53
  else
• 2:53
  can
• 2:53
  digimark
• 2:54
  do
• 2:54
  for
• 2:54
  their
• 2:55
  Snook
• 2:55
  client?
• 2:55
  And
• 2:56
  here
• 2:56
  was
• 2:56
  a
• 2:56
  great
• 2:57
  example.
• 2:58
  Where
• 2:58
  were
• 2:58
  they
• 2:58
  seeing
• 2:59
  fraud?
• 2:59
  First
• 2:59
  it
• 2:59
  was
• 2:59
  in
• 3:00
  bulk
• 3:00
  items,
• 3:00
  now
• 3:01
  gift
• 3:01
  cards.
• 3:01
  And
• 3:01
  they
• 3:01
  can
• 3:02
  attack
• 3:02
  this
• 3:02
  problem
• 3:02
  to
• 3:03
  the
• 3:03
  results
• 3:03
  that
• 3:03
  you
• 3:03
  were
• 3:04
  just
• 3:04
  talking
• 3:04
  about.
• 3:04
  I
• 3:05
  mean,
• 3:05
  it's
• 3:06
  very
• 3:06
  impressive.
• 3:07
  I
• 3:07
  think
• 3:07
  digimarc
• 3:08
  deserves
• 3:08
  a
• 3:08
  lot
• 3:09
  of
• 3:09
  kudos
• 3:09
  here
• 3:09
  for
• 3:10
  being,
• 3:10
  being
• 3:10
  a
• 3:11
  true
• 3:11
  partner
• 3:11
  with
• 3:12
  Schnooks
• 3:12
  to
• 3:12
  figure
• 3:13
  out,
• 3:13
  you
• 3:13
  know,
• 3:14
  how
• 3:14
  do
• 3:14
  we
• 3:14
  continue
• 3:15
  to
• 3:15
  serve
• 3:16
  the
• 3:16
  Schnooks
• 3:16
  customer
• 3:17
  and
• 3:17
  work
• 3:17
  with
• 3:17
  the
• 3:18
  Schnooks
• 3:18
  team
• 3:19
  and
• 3:19
  the
• 3:19
  amount
• 3:19
  of
• 3:19
  fraud.
• 3:20
  Chris,
• 3:20
  did
• 3:20
  you
• 3:20
  know,
• 3:21
  like
• 3:21
  I
• 3:21
  was
• 3:21
  looking
• 3:21
  at
• 3:22
  this
• 3:22
  gift
• 3:22
  card
• 3:23
  fraud,
• 3:23
  almost
• 3:24
  $200
• 3:24
  million
• 3:25
  just
• 3:26
  in
• 3:26
  the
• 3:26
  first
• 3:26
  three
• 3:27
  quarters
• 3:27
  of
• 3:27
  2025
• 3:28
  last
• 3:28
  year.
• 3:28
  They
• 3:29
  don't
• 3:29
  even
• 3:29
  have
• 3:29
  the
• 3:29
  holiday
• 3:30
  numbers
• 3:30
  added
• 3:30
  into
• 3:30
  that,
• 3:31
  which
• 3:31
  I'm
• 3:31
  sure
• 3:31
  is
• 3:31
  so
• 3:32
  much
• 3:32
  more.
• 3:33
  But
• 3:33
  it,
• 3:33
  this
• 3:34
  is
• 3:34
  a
• 3:34
  huge
• 3:35
  problem.
• 3:36
  25%
• 3:37
  of
• 3:37
  fraud
• 3:37
  complaints
• 3:38
  taken
• 3:38
  by
• 3:38
  the
• 3:38
  FTC
• 3:39
  are
• 3:39
  related
• 3:39
  to
• 3:39
  gift
• 3:40
  card
• 3:40
  scams.
• 3:40
  And
• 3:41
  they're
• 3:41
  not
• 3:41
  getting
• 3:41
  ma
• 3:43
  Starbucks
• 3:43
  or
• 3:43
  wherever
• 3:43
  the
• 3:43
  gift
• 3:44
  card
• 3:44
  is
• 3:44
  for.
• 3:44
  They're
• 3:44
  getting
• 3:45
  mad
• 3:45
  at
• 3:45
  the
• 3:45
  retailer
• 3:46
  who's
• 3:46
  selling
• 3:46
  them
• 3:47
  the
• 3:47
  gift
• 3:47
  card.
• 3:47
  So
• 3:47
  I
• 3:47
  think
• 3:48
  this
• 3:48
  has
• 3:48
  just
• 3:48
  eliminated
• 3:49
  problems
• 3:49
  across
• 3:50
  the
• 3:50
  board
• 3:51
  and
• 3:51
  I
• 3:51
  think
• 3:51
  is
• 3:51
  a
• 3:52
  really,
• 3:52
  really
• 3:52
  great
• 3:53
  example
• 3:54
  of
• 3:55
  technology
• 3:56
  that's
• 3:56
  getting
• 3:56
  in
• 3:57
  and
• 3:57
  making
• 3:57
  some
• 3:57
  real
• 3:58
  bottom
• 3:59
  line
• 3:59
  changes
• 4:00
  for
• 4:00
  retailers
• 4:01
  in
• 4:01
  the
• 4:01
  industry.
• 4:02
  Yeah.
• 4:02
  And
• 4:03
  the
• 4:03
  fact
• 4:03
  that
• 4:03
  you
• 4:03
  could
• 4:03
  potentially
• 4:04
  take
• 4:04
  that
• 4:04
  down
• 4:04
  to
• 4:04
  zero.
• 4:05
  Right.
• 4:06
  Nuts.
• 4:06
  You
• 4:07
  know,
• 4:07
  I
• 4:07
  mean
• 4:07
  the
• 4:07
  criminals
• 4:08
  will
• 4:08
  figure
• 4:08
  something
• 4:08
  out
• 4:08
  eventually,
• 4:09
  but
• 4:09
  in
• 4:10
  the
• 4:10
  short
• 4:10
  term,
• 4:10
  like
• 4:10
  if
• 4:11
  you
• 4:11
  can
• 4:11
  get
• 4:11
  in
• 4:11
  front
• 4:11
  of
• 4:11
  this,
• 4:12
  you
• 4:12
  as
• 4:13
  a
• 4:13
  retailer
• 4:13
  can
• 4:13
  make
• 4:13
  a
• 4:13
  pretty
• 4:14
  significant
• 4:14
  impact
• 4:14
  to
• 4:14
  your
• 4:14
  bottom
• 4:15
  line
• 4:15
  pretty
• 4:15
  quickly.
• 4:16
  So
• 4:16
  I
• 4:16
  love
• 4:16
  this
• 4:17
  move,
• 4:17
  it's
• 4:17
  great.