Grading

Investigation Into Fraudulent GIA Reports Continues in India

GradingSep 14, 2021

Investigation Into Fraudulent GIA Reports Continues in India

The lab said “most” of the diamonds paired with reports stating they were natural and untreated are actually lab-grown or treated diamonds.

Carlsbad, Calif.—Authorities in Surat, India are continuing their investigation into a scheme to pass off lower-quality natural and lab-grown diamonds as more valuable natural stones by using fraudulent GIA reports and fake inscriptions. 

In mid-August, The Times of India reported that police in Surat detained a diamond trader and seized 24 GIA reports and five lower-quality diamonds inscribed with numbers that matched five reports for higher-quality stones. 

Authorities also seized the laser machine believed to have been used to inscribe the stones with fraudulent report numbers, The Times reported. 

In a statement issued Monday from its headquarters in Carlsbad, GIA said police in India asked its lab there to aid in the investigation. 

What GIA India determined is that some of the reports were legitimate GIA reports—The Times said the diamond trader obtained reports from business associates of his who provided them without diamonds—while some were counterfeits that used legitimate GIA report numbers. 

The lab also determined “most” of the diamonds paired with reports stating they were natural, untreated stones were actually treated or lab-grown diamonds.

“GIA India is continuing to cooperate with local authorities,” the lab said. “In addition, GIA India requested police conduct the necessary investigations and take the necessary steps to identify and arrest the perpetrators of these malicious acts against GIA and the innocent people who this fraud may have deceived.” 

 Related stories will be right here … 

This “unfortunate” situation in India also underscores the need to have GIA update the diamond grading report before completing a purchase, particularly when the buyer doesn’t know the seller very well, GIA added.

The counterfeit inscriptions that turned up in India recently are the latest in a string for GIA.

An article in the Lab Notes section of the fall issue of “Gems & Gemology” detailed how graders at the GIA lab in Johannesburg, South Africa caught three moissanites inscribed with GIA report numbers for natural diamonds.

Another case was reported in February, this one involving lab-grown or treated natural diamonds inscribed with report numbers for untreated natural stones that had been submitted to various GIA labs worldwide.
Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

WatchesJan 24, 2022
These Were the Top 5 Watch Brands of 2021 on Chrono24

Two of the brands in the top slots may come as a surprise.

SourcingJan 24, 2022
How One Collaboration Is Trying to Bring More American Gems to Museums

“American Gemstones” wants to raise appreciation of the stones, and those who mine and cut them, even more.

TechnologyJan 24, 2022
Reshyne Aims to Put Modern Shine on Jewelry Repairs

The platform helps jewelers manage and track repairs via their website and allows customers to place orders online.

Brought to you by
Swarovski Created Diamonds – A Brilliant Partnership

A tantalizingly beautiful and carbon-neutral choice, Swarovski Created Diamonds are an extension of the beloved brand’s personality and value.

MajorsJan 24, 2022
Kendall Jenner Fronts the Latest Messika Campaign

It portrays a modern “alpha female.”

Weekly QuizJan 21, 2022
This Week’s Quiz
Test your knowledge of the latest jewelry news with this quick test.
Take the Quiz
CollectionsJan 21, 2022
Piece of the Week: Emily P. Wheeler’s Heart Necklace

It’s a whimsical update to a classic riviere.

SourcingJan 21, 2022
Stephen Lussier to Retire After 37 Years With De Beers

Tiffany executive Mark Jacheet will succeed Lussier, who officially steps down in April.

Brought to you by
Melee the Show Launches Tucson Event, Returns to New York in 2022

The boutique tradeshow, happening first in Tucson then New York City, brings together upscale designers from around the world.

Recorded WebinarsJan 21, 2022
Watch: What the Industry Can Expect for Tucson 2022

National Jeweler chats with three colored stone dealers on recent buying activity and what that could mean for the upcoming gem shows.

×