Rickita James, of the 1200 block of Flanders Way in Newark, has been arrested and charged with theft, unlawful use of a credit card and endangering the welfare of a child.
Investigators say James is the mother of the four-year-old involved in this case.
The theft itself happened earlier this month at Downtown Wigs in Wilmington.
In the video, a woman and the boy are seen making their way to the rear of the store seemingly checking out merchandise along the way.
Once there, the woman - now identified by police as James - leans in close. Authorities believe she was giving the child directions by whispering the plan before pointing to the backroom with her left hand, where he was to go alone.
The boy goes into the back room, walks toward the wallet, looks around and then rummages. He locates the wallet, first hiding it behind his back before showing the woman what he found.
The boy slips the wallet into the woman's grip before she hides it in her purse.
Police say the total value of the money was around $300.