2024 has been a year filled with troubling frauds and scams in the jewelry industry, ranging from illegal activities to morally dubious actions. From lab-grown diamonds being passed off as natural to stolen gems, counterfeit inscriptions, and security breaches, the industry has faced multiple scandals. Here are some of the most significant swindles and the steps being taken to combat them:
- Lab-Grown Diamond Submitted as Natural
In January, the International Gemological Institute (IGI) received a pear-cut, 6.01-carat synthetic diamond submitted as natural. The stone, which closely matched the specifications of a natural diamond graded by the Gemological Institute of America (GIA), had a forged GIA inscription. In response, the GIA introduced a same-day verification service to combat fraudulent inscriptions on lab-grown diamonds. - Theft of Jewelry Worth $475,000
In Colorado, a home was robbed of four pieces of jewelry and two diamonds over 4 carats, valued at $475,000. The GIA collaborated with Boulder law enforcement to identify the stolen stones and bring the thief to justice. - Lab-Grown Diamonds Posing as Natural
In February, Gemological Science International (GSI) issued a warning about a rise in jewelry containing pink, yellow, and brown lab-grown diamonds falsely labeled as natural. - Sanctions on Zimbabwe's President
The U.S. government sanctioned Zimbabwe President Emmerson Mnangagwa for corruption related to diamond and gold smuggling. Mnangagwa had facilitated the illicit sale of diamonds and gold, accepting bribes from smuggling networks. - Misleading Advertising by Skydiamond
In April, the UK’s Advertising Standards Authority (ASA) ruled that Skydiamond’s advertisements were misleading, particularly for not clarifying that their diamonds are lab-grown. The Natural Diamond Council (NDC) had filed a complaint about their advertising, which used phrases like “We make diamonds using four natural ingredients…” - Christie’s Auction Security Breach
In May, Christie’s had to delay an auction due to a security breach that exposed personal client data after hackers accessed their website. The company later confirmed that sensitive information was stolen. - Jewelry Store Robbery in June
A jewelry store in June was robbed by a group of 20 individuals using hammers and tools to smash cases and steal merchandise. Despite a police pursuit, only some of the stolen items were recovered. - New York Diamond Dealer Fraud
New York diamond dealer Manashe Sezanayev was arrested for swapping $460,000 worth of natural diamonds with synthetic ones. Sezanayev, operating out of Rachel's Diamonds in New York’s diamond district, allegedly replaced real diamonds with lab-grown stones, altering them to match and even forging GIA laser inscriptions. - Jewelry Store Robberies on the Rise
In September, both Jewelers Mutual and the Jewelers' Security Alliance (JSA) issued an urgent warning about an uptick in jewelry store robberies, primarily by organized crime groups from South America. JSA Vice President Scott Guginsky noted that the severity and frequency of these robberies were unprecedented. - Luxury Jewelry Supervisor Sentenced for Theft
Earlier this month, Benjamin Preacher, a supervisor at a luxury jewelry company, was sentenced for stealing over $1.7 million in precious metals, including gold, silver, and platinum. Preacher worked at Tiffany & Co. and was sentenced to 59 days in prison, two years of supervised release, home confinement, and 200 hours of community service.
These incidents serve as a stark reminder of the ongoing risks and frauds within the jewelry industry, and the measures being taken to protect both businesses and consumers.