They then get a sex offense charge, can't get a job, are looked down upon by all their friends/family no matter how much they claim innocence and get even poorer.
I realize a Geek Squad member isn't quite as low income as you can go, but it's still low income people incentivied to hurt other low income people. .. Mortys killing mortys.
In the case of the images, the evidence might be just as slight, but the police have essentially communicated to the employees that they won't be looking too deeply at the evidence and juries are ignorant when it come to technology and punitive when it comes to 'illegal images'.
The argument here as the defending attorney is ridiculously obvious: the employee has both motive and incentive; but I'd still give high odds of conviction (or worse, a plea bargain) and even if acquitted the accused will be marked for as long as people remember.
I realize that for many people 'pedophile' is the root password to the Constitution (not my line), but the existence of horrible people should not be an excuse to elevate authoritarians.
You're still missing an important implication of this, now a real child pornographer's lawyer can get him off by creating enough doubt in Jury's mind that Geek Squad's employees planted the evidence, especially since they are getting paid for it.
In other words, not only there is a risk of innocent people getting arrested and possibly going to jail, there is a risk of guilty people going free.
A dime bag by definition retails for $10. $500 < $10. (The cost is reduced by buying in bulk, if you wanted to scale up this scheme.)
Digital evidence is really easy to fake, often leaves little if any evidence that it was planted, and the prosecutors don't have much incentive to look for evidence to determine whether the digital evidence was planted or not.
A good analogy is imagine if dry cleaners were paid by the FBI every time they found a dime bag accidentally left in someone's pocket. How many of those dime bags do you think would get planted by the employees to collect their $500 reward?