An inventory and anti-theft alarm tag system that includes at least one RFID tag including an RFID transmitter, a counting chip and a locking mechanism having a pressure sensor. The counting chip can be activated when the locking mechanism is in a locked position. The inventory and anti-theft alarm tag system also includes a master database for communication between the at least one RFID tag and the master database via the RFID transmitter. The at least one RFID tag transmitting counting chip information to the master database. The counting chip information including an open position in response to pressure being applied to the pressure sensor. The master database tracking a logical sequence of the counting chip information for the at least one RFID tag, and, if the counting chip information is out of logical sequence, the master database sends an alert.