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Frauds and Switches against Retail Jewelers

       There has been a large increase of crime reports to IAJE involving frauds and switches against retail jewelers when they are buying gold from walk-in sellers. Due to the poor economy and the high price of gold, the buying of gold by retail jewelers has increased dramatically and has resulted in a substantial increase in these crimes. There are two basic types of crimes:

1. The seller will produce a real gold item which the jeweler will test and will determine that it is in fact gold. However, sometime before the seller leaves the store with cash or a check, the seller switches the item that was tested for a non-gold item. The seller may switch it by putting it back in a bag and taking out a different item or some other method.

Following testing, jewelers must be sure that the seller has no opportunity to switch the item.

2. The seller will produce a fake gold item which is heavily plated and tests positive that it is gold, however, the gold plating is only superficial. The jeweler pays and the seller leaves. The jeweler later subjects the item to more rigorous testing and discovers it is not gold and that there has been a fraud.

Superficial testing of the item may not indicate the true metal beneath the surface.

       Another version of this took place in Daytona Beach, Florida at Volusia Gold & Diamond.  At some point someone, yet not identified, switched a $54,000 ring with over 1.72 karats of diamonds and emeralds for a ring worth $10.

      The con took two women, who came in and asked to see a tray of rings but the clerk told them that she could only show one ring at a time.  However, the women kept insisting that they wanted to look at several rings and compare them. When the clerk agreed to pull the trays with a little distraction the ring was replaced with the fake and the clerk seeing a full tray did not suspect a switch.

Advice from the Roy Webb, President of the IAJE: Stick to the rules!

 

Security When Traveling to Trade Shows or Home

 

1. Jewelers should vary their travel route from store to home and make sure they are not being watched or followed. This requires evasive driving action.

 

2. Jewelers must be concerned about their physical security at home: proper alarms, locks and lighting.  At shows always use a safe whenever possible.

 

3. In many invasions of jewelers’ homes, a family member at home has opened the door to the invaders, who often pretend to be delivery people. All family members and household help must be trained to follow strict security procedures and not open the door to unknown persons without proper ID.

 

4. All family members must be alert to suspicious persons around the home who may be engaged in casing the home seeking information such as who are the family members and what are their patterns and schedules.

 

5. Jewelers should have unlisted and unpublished home phone numbers, and should make sure that their home phone number can’t be located on Google or another search engines, that may list their home address.

 

6. Jewelers must be careful with respect to home and family information and photos on social networking sites such as Facebook.

 

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CRIME PREVENTION ADVICE FOR JEWELERS

BASIC PROCEDURES TO PREVENT THEFT
1. Have buzzers or chimes on your doors so that you are alerted when someone enters your premises.

2. Make eye contact with each customer who enters your store, greet the customer, and note his or her appearance.

3. Have at least two people on the sales floor at all times.

4. Wait on only one customer at a time.

5. Never turn your back on a customer.

6. Never leave a customer alone with merchandise.

7. Never leave the showroom unattended, even "just for a minute." You can be distracted or tempted to go to the rear of the store if someone asks for gift wrap or when answering the phone.

8. Show only one item at a time. If a second item is requested, show it on your own wrist or finger. Some highly successful jewelry retailers display a sign saying that their insurance company only permits them to show one item at a time.

9. When showing high-end goods to unfamiliar customers, tell them that your insurance requires you to ask for identification before displaying the items.

10. Do not bring entire trays of merchandise or a diamond wallet to the counter when waiting on a customer. Too much value will be exposed to a grab-and-run theft.

11. All wall cases, show windows, display cases and showcases must have locks, and be kept in a locked position except when actually removing or returning goods. It is best to have locks that do not permit the key to be removed unless the case lock is in a "locked" position.

12. Keep the keys to the showcases on your person, never on a hook or shelf in plain view. Keep the keys on a wrist or other holder so that it is less likely for you to put them down and forget them.

13. Be warned that many showcases have generic keys, that is, keys that fit all showcases of that type. Anyone with a key to that type of showcase may be able to unlock your showcase and steal your goods. If a generic lock will open your showcases, consider installing unique locks.

14. Showcase tops sealed with adhesive can be slit by thieves and lifted to remove goods. Make sure your showcases have secure metal edges or other means to secure the top even if the seal is cut. Inspect the tops and sides of showcases several times a day for evidence of tampering or attempts to lift the top.

15. After a customer has handled an item, re-examine it to make sure it is the same item before returning it to the showcase. Do not allow a customer to return an item to a tray.

16. Keep all jewelry trays completely filled, either with goods or with markers.

17. The most difficult showcases for a thief to get into are the cases in which the back flips up. It is easier for thieves to reach into cases that slide open from either side.

18. Do not let non-employees into work areas, your safe area, your rest room or behind your showcases. This can be a trick to gain access to your merchandise, or to case your premises for a future crime.

19. Your counter display cases should be built in a way that does not permit someone to crawl under them.

20. Make sure there are no blind spots in your store in which visibility from another part of the selling floor is obstructed.

21. Have an alert system in place in your store. If a suspicious person or situation is spotted, a code word or phrase can be used to alert the other employees that a crime may be underway.

22. If a customer is causing a commotion or engages in a loud disagreement, be alert for a distraction theft by an accomplice, and call another employee to assist you. Whenever you are suspicious of customer, request assistance from the manager or another employee.

23. Be particularly careful when customers are wearing or carrying inappropriate clothing, bags or items that could be used to hide goods or block your view while accomplices steal goods. Be especially careful if these items are placed on the showcase counter. In some stores sales associates immediately offer to take customers' coats and bags and put them in a safe place while the customers shop.

SECURITY FOR JEWELERS AT HOME
1. CASING. Attacks on jewelers’ homes are preceded by some form of casing, in which the criminals follow a jeweler, stake out his home or business, and try to find out information about him, his patterns and his family. All jewelers should be careful at all times to see if they are being watched or followed. Are people sitting in a car near your home or business for too long? Is a car following you when you leave the store? Do you have suspicious phone calls or suspicious “customers” visiting your store? The best opportunity for stopping a home invasion is to spot suspects during the casing period and to call the police.

2. VARY ROUTE. Vary your route and time of travel to and from work. Be alert to people 
following or watching you. To determine if you are being followed, drive very slowly and observe if any vehicles are hanging back and unwilling to pass you.

3. PHYSICAL SECURITY AT HOME. Security features should be a very important factor in selecting the residence in which you choose to live. Jewelers should evaluate such issues as a dead-end vs. heavily traveled street, the closeness of neighbors, and the garage or parking set-up. Other issues of physical security must also be given careful consideration, such as having proper locks, an alarm system and good lighting. There are jewelers who highly recommend a dog at home for warning and protection.

4. SUSPICIOUS INCIDENT LOGBOOK. Many jewelers have found it helpful to keep a suspicious incident logbook at their business premises in which all employees can record things that appear to be “not quite right.” This should also be done at home. The log can be used to write down details such as license plate numbers, names used, time, physical description and other information regarding suspicious incidents that may later be helpful to police.

5. TRAINING FAMILY MEMBERS. Even the youngest family member in your household needs some instruction about the dangers of the jewelry business and how they must cooperate. Family members should be trained not to give out information on the phone, not to open the door to unknown people, to be extremely careful regarding delivery personnel, and to be alert for suspicious people watching the house. Even temporary visitors, such as an in-law or babysitter, need specific instructions.

6. NO LARGE SAFE OR JEWELRY MERCHANDISE AT HOME. Never keep jewelry merchandise or a large safe at home. Personal jewelry may be kept in a small, concealed safe in a floor or wall. Consider keeping valuable personal
jewelry in a bank safe deposit box when not being used.

7. TRUSTED NEIGHBORS. Whether near your home or business, trusted neighbors can provide additional eyes for spotting suspicious behavior by those casing you. Discuss with trusted neighbors your special risks as a
jeweler and enlist their help.

8. HOUSEHOLD HELP. Every household worker who comes into your home puts you at a greater risk. Cleaning ladies, lawn help, babysitters, painting and remodeling people, and a long list of workers with access and knowledge of your household all pose some risk. Even if they are honest themselves, they may have boyfriends, spouses, relatives or friends who are criminals, or they may unintentionally provide information to those who then target you. You must screen, monitor and supervise all household help very carefully. In the case of a nanny or someone with close contact with your household, or in the case of someone who lives with you, a background investigation of that person is suggested.

9. TELEPHONE. Have an unlisted and unpublished home phone number. Keep a charged cell phone with you at all times, including at your beside at night.

10. SOCIAL NETWORKS. Do not put personal information about your home, family members
and such things as vacations on social networking sites.

11. CAR PANIC ALARM. Some jewelers keep their car keys next to their bed so that they can hit the remote panic alarm of their car to help scare off intruders at the first hint of trouble.

12. ESTABLISH CONTACT WITH YOUR LOCAL POLICE DEPARTMENT. Before any problem develops, contact your local police department and get to know someone in a supervisory position. Explain to the supervisor or chief the special crime risks of jewelers so that if you do have a problem, you will be calling someone you know. 

13. SECURITY CODE PHRASE. Jewelers should consider having a family security code phrase that can be used to alert a family member on the phone to a crime problem. The code phrase must not raise the suspicions of criminals holding the jewelry or family hostage.

Assume criminal gangs will use any means, including violence, to carry out a home
invasion and robbery. If a jeweler is a victim of a kidnapping/robbery, the jeweler and
family members and others involved should cooperate fully with the criminals or risk
violence.

      The International Alliance Jewelry Exchange (IAJE) is an exclusive global network of reputable member-vetted Jewelry dealers and designers with a reliable, established business history.  The IAJE’s international online stores and auction brings both quality and safety to more than 270,000 global buyers.   Find us on Facebook 

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