Cover.indd - page 19

their goods to another party, typically there are
issues with providing coverage for that.”
Extra coverage is necessary for certain situations,
such as traveling with jewelry for a show or to bring
to a client. A jeweler with regular coverage but not
travel insurance may not be protected if the scam
occurs outside of the store premises.
PREVENTAT I VE MEASURE S
While scams account for less than 10% of the overall
claims Jewelers Mutual sees each year, they are still
significant, says Elliot. “It’s a smaller percentage
than blatant thefts or robberies, but it is still
something that happens, and jewelers need to take
the proper precautions. Most important is trusting
their gut instincts, experience level and expertise.
If something doesn’t seem right or feel right, they
should refrain fromproviding any goods.”
There are countless small things jewelers can do
to help avoid getting swindled. Jewelers should be
wary of specific transactions involving high-priced
jewelry or watches originating from other states or
countries, as well as rush jobs where customers want
to buy right before closing, and emails from existing
clients asking to purchase expensive jewelry.
“If you are a diamond dealer [or jeweler] and
you’re selling a very significant amount of product
to somebody, a telephone call to confirm that it’s
actually legitimate is not crazy,” says Kennedy.
Hendel believes it’s all about control. In addition
to keeping tabs on everyone in the store, jewelers
need to keep doors to the back room and the safe
area closed, and not let customers touch the display
cabinets or put items on top.
Meanwhile, if the customer is in the shop, a good
old-fashioned conversation can help ferret out
scammers from real clients.
“If someone is buying a $20,000 watch, you’ve
likely been speaking to them for a while,” comments
Kennedy. “It’s not like they just walk in, pick it out
and walk out.”
He notes that people who buy expensive pieces
usually go to trusted jewelers, so if you’ve never seen
them before, it should raise a red flag. “Ask them
why they chose your store, if they’re visiting the
neighborhood,” he suggests.
Gonzales agrees, adding that the longer a person
talks, the more likely they are to lose their cover.
“There’s a certain amount of vigilance that has to
overtake a desire to close a sale,” he says.
Lawton recommends changing up the schedule
every week or so, and not investing in how a person
looks. Jewelers often see a well-dressed individual
who appears wealthy, and automatically trust them.
“Don’t get clouded by the dollar signs in your
eyes and take out the whole kit and caboodle in
an effort to make a big sale,” he advises. “Because
while you’re doing that, I’m literally calculating
everything you’re showing me, I’mwatching where
it’s going.”
He also recommends displaying a few items in
the store that would immediately deter scammers
and thieves. “They could put a two-way mirror up
— it doesn’t even have to be real. Just place a sign
over it saying ‘Two-way mirror.’ Put a sign up on the
door that says ‘Off-site, 24-hour monitoring,’ and
that’s it, because that would scare a professional like
me. I want to know every single little thing. I don’t
want any surprises, period. So if I’munsure how
many people are in that store, or at what point I may
be seen by someone off-site, whether you have that
or not doesn’t matter. Just the idea that youmight
would make me think twice.”
It all comes down to taking it slow and paying
attention to the details, says Gonzalez, even if it
may mean losing a sale. “Sometimes it may be
worth losing something in order to prevent losing
everything.”
Scammers use either a fraudulently created identity or a
stolen one to approach a credit provider such as Wells Fargo
or Synchrony, which can issue an in-store credit card of up to
$25,000 for use at an independent jeweler (similar to a gift card).
Since such providers usually do only a cursory credit check to
approve the card at first, the scammer can go purchase high-value
items in-store immediately after approval. By the time the credit
company finds out the applicant is fake, the goods are already
gone. Some credit companies charge back the item, leaving the
jeweler with the loss.
SOLUTION:
Request ID and make sure everything matches the
in-store credit. Talk to the customer and ask questions. Check
that their responses add up.
Basic distraction scams. These may involve
a bored husband roaming around while
the wife looks at jewelry, a child running
around the store and behind the counters,
or someone spilling a drink on the floor by
“mistake,” among others.
SOLUTION:
Make sure displays are locked,
keys put away, back-room doors and safes
closed. Don’t turn your back on customers
who have jewelry in their hands.
Scammers don’t
steal a piece of
jewelry, but instead
nick the price tag
while looking at
the items. They
then put it on a
fake ring and come
back two to three
weeks later, or go
to another branch
if it’s a chain store.
They ask to see
the ring again and
switch the fake
ring for the real
one, pocketing the
latter.
SOLUTION:
Be
diligent about
paying attention to
what the customer
is doing while they
are handling your
jewelry. Inspect
pieces before
putting them back
in the case.
SCAM 6
SCAM 8
SCAM 7
SEPTEMBER 2020
17
DIAMONDS.NET
1...,9,10,11,12,13,14,15,16,17,18 20,21,22,23,24,25,26,27,28,29,...94
Powered by FlippingBook