Crime

How a Jeweler Lost $1.6M in Less than 24 Hours

CrimeJan 04, 2023

How a Jeweler Lost $1.6M in Less than 24 Hours

Joyce’s Jewelry in Uniontown, Pennsylvania, is suing PNC Bank after cybercriminals emptied its accounts through a series of wire transfers.

20230104_Joyce's Jewelers.jpg
Joyce’s Jewelry in Uniontown, Pennsylvania, is suing PNC Bank after cybercriminals stole more than $1.6 million from its accounts via unauthorized wire transfers. (Image courtesy of Joyce’s Jewelers Facebook page)
Uniontown, Pa.—The owners of Joyce’s Jewelry in the Pittsburgh-area city of Uniontown are suing PNC Bank after cybercriminals emptied its accounts of nearly $1.6 million through a series of wire transfers.

The retailer filed the lawsuit in October accusing PNC Bank of failing to keep its money safe. The Pittsburgh Post-Gazette covered the suit in a story published Monday.

The theft took place on the afternoon of May 12, 2022. 

According to court documents filed in U.S. District Court in Pittsburgh, a jewelry store employee accidentally logged into a phony website made to look like PNC Bank’s website.

She noticed the website wasn’t loading properly and called the customer service number she found on the spoofed webpage. She was advised to be patient as the website was slow that day, something she said PNC had told her before, court documents state.

Soon after, the store’s internet service went down. Then the employee and Joyce’s Jewelry CEO Brandon Katzeff experienced a “subscription attack,” meaning they started receiving hundreds of emails every hour making it difficult to tell which are genuine.

That night, PNC sent Katzeff an email, alerting him to “two small but suspicious charges” on one of the store’s credit cards. He called PNC’s fraud prevention service line and canceled the credit card.

In the lawsuit, Joyce’s claims no mention was made of any other suspicious activity or the multiple wire transfers made that day.

The next morning, after IT services restored the store’s internet service, Katzeff realized the company accounts had been hacked and he reached out to PNC Bank.

Using the employee’s login credentials obtained from the phishing website, cybercriminals had emptied all four of the store’s accounts through 11 wire transfers over a period of 20 hours.

In total, around $1.6 million was transferred from the jeweler’s PNC accounts to the hackers’ accounts at JPMorgan Chase and Bank of America.

Later that day, a PNC cyber fraud analyst emailed Katzeff about an attempted wire transfer of more than $105,000. It was the last of nearly a dozen unauthorized wire transfers and the only one flagged by the bank, the lawsuit claims.

The analyst told Joyce’s the bank held no responsibility for the losses and advised Katzeff to contact law enforcement and the beneficiary banks.

PNC Bank has filed a motion to dismiss the lawsuit and, through a spokesperson, said it believes it took the right steps in regard to the transactions. 

“While PNC regrets any losses incurred by a customer, we disagree with the allegations in this case and believe we acted appropriately with respect to the transactions,” a PNC Bank spokesperson said in a statement to National Jeweler.

 Related stories will be right here … 

Joyce’s Jewelry disagrees.

The transfers should have raised a red flag for PNC, the jeweler said in its lawsuit, noting the money was moved to accounts and businesses it had never sent money to before. 

The wire amounts were also far above the usual transaction amounts by tens of thousands of dollars per wire. Joyce’s had never wired close to a million dollars in one day.

The wires also exceeded the funds available, leading to an overdraft charge of nearly $200,000 for a customer that, to the best of Joyce’s knowledge, had not overdrawn on an account before. 

“The bank’s failures here are stark and should shock and frighten small business customers who believe their accounts and accumulated savings are secure with PNC,” court documents state.

“PNC’s failures allowed substantially all the liquidity that Joyce’s had managed to accumulate over decades to be stolen in less than 24 hours.” 

The bank has also not provided the jeweler with information about how to recoup its losses, said Joyce’s, and allegedly kept the owners in the dark about what was being done to recover the money.

The jeweler was also directed to a third-party collection agency to demand repayment of the overdraft fees and could be billed for “corporate analysis charges” as PNC looks into the theft.

The family-owned business was founded by Joyce Katzeff in the early 1970s. It began as a small store in Uniontown, Pennsylvania, later expanding to a 7,000-square-foot location.

The company has banked with PNC and banks acquired by PNC since its founding and implemented the recommended security features on its “Pinacle” online and mobile banking platform.

The wire procedures and security protocol for Joyce’s requires multi-factor and dual-control authorization to send wires, the jeweler said in the suit, but the thieves got into their accounts using just one employee’s login information.

The suit notes that some of the money has been recovered, including an anticipated, unspecified “partial” recovery from Bank of America and more than $224,000 from JPMorgan.

However, PNC withdrew around $192,000 to pay itself for the overdraft, interest, and fees.

Joyce’s losses stand at around $1.1 million as of October 2022.

In addition to the financial loss, Joyce’s said it has struggled to run its jewelry store with minimal cash and frozen accounts.

Its employees and vendors were also unable to cash or deposit their paychecks and payments.

The retailer has had to change its purchasing practices, the suit states, causing it to lose out on discounts from trade show purchases.

And Joyce’s senior management has had to shift focus from the business to its financial issues.

The jeweler is asking the court to order PNC Bank to refund all of its stolen money and overdraft fees as well as award it damages. 

The Latest

Khepri Jewels Luna collection fancy color fringe multi-shape drop diamond earrings
EditorsJun 24, 2025
The Best New Jewelry from Couture 2025, Part 2

Associate Editor Natalie Francisco shares 20 additional pieces that stood out to her at the Couture show.

Lori Tucker
IndependentsJun 24, 2025
Colorado Bench Jeweler Celebrates 50 Years With Local Retailer

Lori Tucker started at Williams Jewelers when she was 18 years old.

“Marvel | Citizen Zenshin” watch for the new The Fantastic Four movie
WatchesJun 24, 2025
Citizen’s New ‘Fantastic Four’ Watch Is Literally Super

The “Marvel | Citizen Zenshin” watch is crafted in Super Titanium and has subtle nods to all four “Fantastic Four” superheroes on the dial.

an instructor and a student in a bench jewelry classroom
Brought to you by
Investing in the Next Generation of Bench Jewelers

The Seymour & Evelyn Holtzman Bench Scholarship from Jewelers of America returns for a second year.

XO Tacori diamond ring
MajorsJun 24, 2025
Tacori, QVC to Launch Exclusive Lab-Grown Diamond Jewelry Collection

The “XO Tacori” collection was designed to blend luxury and accessible pricing.

Weekly QuizJun 20, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Pritesh Patel
GradingJun 23, 2025
GIA Names New President and CEO

Pritesh Patel, the lab’s chief operating officer, will take over as president and CEO of GIA.

Graphic for Las Vegas recap episode of “My Next Question”
Recorded WebinarsJun 23, 2025
Watch: Top Trends at Couture, JCK Las Vegas 2025

National Jeweler and Jewelers of America discuss the standout jewelry trends and biggest news to emerge from the shows this year.

Jewelers of America logo with meetup, State of the Majors, giveaway and massages
Brought to you by
Jewelers of America is Headed to Las Vegas for JCK 2025

The countdown is on for the JCK Las Vegas Show and JA is pulling out all the stops.

Luanda Accord
SourcingJun 23, 2025
Diamond Producers, Organizations to Kick in Money to Promote Natural Diamonds

Signatories to the “Luanda Accord” committed to allocating 1 percent of annual diamond revenue to the Natural Diamond Council.

Penny Preville, Maggie Hess, Stella Song, and Benjamin King
Events & AwardsJun 23, 2025
Jose Hess Design Awards Celebrate 6 Jewelry Designers

The winning designs captured the “Radiance” theme.

24th Gem Awards Show Logo
Events & AwardsJun 23, 2025
Gem Awards Now Accepting Nominations for 2026

Nominations in the categories of Jewelry Design, Media Excellence, and Retail Innovation will be accepted through July 30.

Single Stone Bryn Ring and Grace Lee Marquise Demi Demi Ring
TrendsJun 20, 2025
Dua Lipa Stays On-Trend With Chunky Engagement Ring

The singer’s ring ticks off many bridal trends, with a thick band, half-bezel setting, and solitaire diamond.

Yvonne Léon Python Gold Bracelet
TrendsJun 20, 2025
Piece of the Week: Yvonne Léon’s ‘Python Gold’ Bracelet

The bracelet references vintage high jewelry and snake symbolism as a playful piece where a python’s head becomes a working belt buckle.

Marie-Thérèse Pink diamond and Blue Belle sapphire necklace
AuctionsJun 18, 2025
Historic ‘Marie-Thérèse Pink’ Diamond Fetches $14M at Christie’s

The 10-carat fancy purple-pink diamond with potential links to Marie Antoinette headlined the white-glove jewelry auction this week. 

Caryl Capeci Starboard Cruises
EditorsJun 18, 2025
Q&A: Caryl Capeci Dives Into Cruise Jewelry Shopping

The Starboard Cruises SVP discusses who is shopping for jewelry on ships, how much they’re spending, and why brands should get on board.

Gresham grasshopper ring
AuctionsJun 18, 2025
16th-Century ‘Gresham Grasshopper’ Ring Sells for $56K

The historic signet ring exceeded its estimate at Noonans Mayfair’s jewelry auction this week.

Kirk Kara fine jewelry
CollectionsJun 18, 2025
Kirk Kara Celebrates 135 Years With New Jewels

To mark the milestone, the brand is introducing new non-bridal fine jewelry designs for the first time in two decades.

Gemfields 36 Carat Ruby
SourcingJun 18, 2025
Gemfields Sells 36-Carat Rough Ruby

The gemstone is the third most valuable ruby to come out of the Montepuez mine, Gemfields said.

Alex Brown
TechnologyJun 18, 2025
Alex Brown Named President of Smithee Group

Founder and longtime CEO Ben Smithee will stay with the agency, transitioning into the role of founding partner and strategic advisor.

Jade Ruzzo Gloria Collar
EditorsJun 17, 2025
The Best New Jewelry from Couture 2025, Part 1

Associate Editor Natalie Francisco shares 20 of her favorite pieces from the jewelry collections that debuted at Couture.

Jewelry industry author, speaker, and sales expert Peter Smith
ColumnistsJun 17, 2025
Peter Smith: Is Your Comp Plan a Hiring Hindrance?

If you want to attract good salespeople and generate a stream of “sleeping money” for your jewelry store, then you are going to have to pay.

Selection of jewelry from Sotheby’s New York High Jewelry sale
AuctionsJun 17, 2025
Colored Gemstones, Signed Jewels Shine in Sotheby’s High Jewelry Sale

The top lot was a colorless Graff diamond, followed by a Burmese ruby necklace by Marcus & Co.

Amanda Gizzi, Jewelers of America’s SVP of corporate affairs
MajorsJun 17, 2025
Amanda Gizzi Gets a Promotion at JA

Gizzi, who has been in the industry since 2001, is now Jewelers of America’s senior vice president of corporate affairs.

Kering CEO Luca de Meo
MajorsJun 17, 2025
Kering Names Automotive Exec as Its New CEO

Luca de Meo, a 30-year veteran of the auto industry, will succeed longtime CEO François-Henri Pinault.

Botswana Minster of Minerals and Energy Bogolo Joy Kenewendo
EditorsJun 16, 2025
Q&A: Bogolo Joy Kenewendo on Mining, Tariffs, and the Energy of Las Vegas

Following visits to Vegas and New York, Botswana’s minerals minister sat down with Michelle Graff to discuss the state of the diamond market.

Greenwich Street Jewelers Your Love Has the Perfect Ring Campaign
IndependentsJun 16, 2025
Greenwich St. Jewelers Launches Commitment Campaign Celebrating LGBTQ+ Couples

The “Your Love Has the Perfect Ring” campaign showcases the strength of love and need for inclusivity and representation, the jeweler said.

Ivette Nersesyan-Stephanopoulos
MajorsJun 16, 2025
Ivette Nersesyan-Stephanopoulos Joins Tiffany & Co.

The former De Beers executive is the jewelry house’s new director of high jewelry for the Americas.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy