Reading from ps2 barcode scanner

Question

I am trying to read from a ps2 barcode scanner (Datalogic gryphon D). The Arduino is powered by the USB. The circuit is shown below

The pinout of the ps2 is I have used the fritzing pin assignments when making the diagram.

I am using the code from here

#include <PS2Keyboard.h>

const int DataPin = 8;
const int IRQpin =  5;

PS2Keyboard keyboard;

void setup() {
  delay(1000);
  keyboard.begin(DataPin, IRQpin);
  Serial.begin(9600);
  Serial.println("Keyboard Test:");
}

void loop() {
  if (keyboard.available()) {

    // read the next key
    char c = keyboard.read();
    Serial.print(c);
  }
}

The scanner scans and indicates that the scan was successful. The Arduino code shows "Keyboard Test:", but none of the scans show anything. What am I doing wrong?