CrimeDec 20, 2022
The Biggest Security Mistakes Jewelers Are Making Right NowCrimeJan 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.
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 …
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.
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.
More on Crime
The Latest
Events & AwardsDec 20, 2024
Two Participants Complete Inaugural Ella Klein InternshipJamie Dunton and Gabriella Botelho are the first graduates of the program, created by the WJA Foundation and Julius Klein Diamonds.
CollectionsDec 20, 2024
Piece of the Week: Retrouvaí’s Ring for CharityIn the spirit of giving, Retrouvaí will donate $4,000 from the sale of this ring to the Los Angeles Regional Food Bank.
IndependentsDec 19, 2024
Michigan’s DeVries Jewelers Unveils New Location in Time for the HolidaysCo-owner Dan DeVries shared what it’s like moving into a space triple the size of its old store and how it feels to be a “real jeweler” now.
Brought to you by
De Beers Group Launches Holiday Campaign for Natural Diamonds‘Forever Present’ campaign revives the iconic A Diamond is Forever tagline and celebrates the diamond dream.
CollectionsDec 19, 2024
State Property Transforms Spain’s Generalife Gardens into JewelryAlong with the latest “Gardens” collection, the brand has released limited-edition designs offering more indulgent pieces.
Weekly QuizDec 19, 2024
This Week’s QuizTest your jewelry news knowledge by answering these questions.
SourcingDec 19, 2024
The Second-Largest Diamond Ever Found Now Has a Name The 2,488-carat diamond recovered from a mine in Botswana has been dubbed “Motswedi” while its 1,094-carat sibling is “Seriti.”
SourcingDec 19, 2024
Gemfields Reports Record Ruby Auction Results Despite Challenges at SourceThe average price per carat hit a record high for the miner, which said it remains unaffected by the conflict in Mozambique.
Brought to you by
Advocacy and Excellence: How Jewelers of America Is Committed to Elevating Our Industry For over a century, Jewelers of America has been the voice of the industry and valuable resource to jewelers across the country.
AuctionsDec 18, 2024
Alexandrite Ring Sells for Record-Setting $1.9M at Sotheby’sThe nearly 17-carat stone made history for the color-change gem that, according to the auction house, is experiencing a “notable surge” in the market.
WatchesDec 18, 2024
Historic Titanic Pocket Watch Winds Its Way Back to Tiffany & Co. More than a century after survivors gifted a Tiffany timepiece to the captain of the ship that rescued them, the jeweler has reclaimed it.
TechnologyDec 18, 2024
Picchiotti Utilizes AI in ‘Spotlight’ Video CampaignThe videos highlight how pieces from the “Xpandable” and “Reversible Xpandable” collections put the wearer in the spotlight.
IndependentsDec 18, 2024
Industry Veteran Steve Feldman Set to RetireFeldman reflected on 45 years in the jewelry industry and clarified that it’s not a total retirement.
Events & AwardsDec 17, 2024
Chanel to Receive Gem Award for High Jewelry ExcellenceThe luxury brand is being honored for excellence in high jewelry design in its “Haute Joaillerie Sport” collection.
SourcingDec 17, 2024
Frank Circelli, Founder of Gem Shopping Network, Dies at 75Circelli was a pioneer in the world of TV shopping who is remembered for his passion for gemstones and his big personality.
AuctionsDec 17, 2024
Blue Diamond Fetches $8.8M at Christie’sThe nearly 6-carat stone headlined the recent jewelry auction, which also featured Mica Ertegun’s jewelry.
TrendsDec 16, 2024
Marion Fasel’s New Book Delves Into the History of Engagement Rings“The History of Diamond Engagement Rings: A True Romance” is a 128-page small-format book containing more than 165 images.
WatchesDec 16, 2024
Take a Look Inside the New Rolex Boutique on Rodeo DriveGearys opened a 6,200-square-foot Rolex store with a design that pays homage to the brand’s connection to the ocean.
GradingDec 16, 2024
GCAL By Sarine Expands 8X to 2 More Fancy Shapes The diamond cut grade is now available for marquise- and pear-shaped diamonds.
SourcingDec 16, 2024
Diamonds Do Good Announces 2025 Award RecipientsDDG said the honorees’ business practices embody a commitment to positive social impact, industry innovation, and community empowerment.
TrendsDec 13, 2024
Selena Gomez Said ‘Forever Begins Now’ to Marquise Diamond Engagement RingEstimates on the size and value of the solitaire diamond, which is mounted on a diamond pavé-set yellow gold band, vary.
TrendsDec 13, 2024
Piece of the Week: Martin Katz’s Tanzanite Drops These half-moon tanzanite earrings totaling 25 carats are part of a special trunk show taking place this weekend in Dallas.
Recorded WebinarsDec 13, 2024
Watch: The Highs and Lows of 2024The National Jeweler editors recap the top news, the best jewels, and their favorite stories of the year.
AuctionsDec 12, 2024
Tom Brady’s Watches Top $4M at Sotheby’s AuctionThe highest-grossing lot of the sale was the retired QB’s Rolex Paul Newman Daytona “John Player Special.”
SourcingDec 12, 2024
Grizzly Emerald Auction Garners $22.4MRecent expansion initiatives at the Zambian emerald mine have shown strong production numbers, said Grizzly founder Abdoulaye Ndiaye.
MajorsDec 12, 2024
Mark Henry Appoints New Director of SalesCarrie Forman joins the brand to guide it into the next phase of growth with major and independent retailers in the U.S. and abroad.
SourcingDec 12, 2024
De Beers Announces 2024 ‘Shining Light’ Award WinnersThe competition awarded 12 designers, each from a country where De Beers recovers diamonds, with business support and tuition assistance.
CollectionsDec 12, 2024
The Jared Atelier x Vera Wang Collection Emphasizes EleganceThe high jewelry collection features 14 one-of-a-kind pieces, with serpent and ribbon motifs winding their way through the collection.
