TechnologyJul 10, 2026
There’s a New Blind Box for Luxury Watches Collectibles platform Arena Club’s new Time Boxes could contain a Rolex or Patek Philippe watch.
CrimeJun 26, 2017
Socially Engineered Shipping Scheme Hits Jewelry Industry
The perpetrators are mining information from company websites and Facebook in order to appear legitimate when placing fraudulent orders for high-end items, the JSA warns.
New York--A group of perpetrators are calling jewelry companies and faking their identities in order to trick them into shipping out high-end items, the Jewelers Security Alliance said in a special alert issued late last week.
JSA President John J. Kennedy said that while the exact number of perpetrators is unknown, the shipping scam is the work one of one fairly large singular group believed to be operating in the United States and targeting jewelry firms in the Northeast and Southeast.
He said that both suppliers and retailers are potential victims, with the perpetrators using what’s called social engineering to try to fool their victims into shipping out high-end merchandise.
Social engineering is defined as the use of deception to manipulate individuals to divulge confidential or personal information that may be used for fraudulent purposes. In May of this year, the FBI released a public service announcement about social engineering being used in business email compromise attacks, which cost businesses globally more than $5 billion between October 2013 and December 2016.
But, electronic contact is not part of the current scam that’s impacting jewelers and suppliers, Kennedy said.
Instead, the perpetrators are using the phone, calling suppliers pretending to be jewelers, or targeting multi-store retail chains posing as a store manager or employee of another branch.
They will contact the retail store or supplier with a great deal of knowledge about the company, like names of employees, shipping procedures, inventory in stock and SKU numbers.
While some of the information is obtained via phone calls made prior, much is mined from the internet, including the store’s website and the social media profiles of the business owner and his or her employees.
Then the perpetrator will ask for the supplier or store to ship certain high-end items--Kennedy said mainly large diamonds and high-value watches--overnight, with the goal of diverting the package en route by changing the shipping address to an address of their choice.
Sometimes when the fraud is being committed at a multi-store retail chain, the perpetrator will give an address that he or she claims belongs to a customer or salesperson and asks for the item to be sent there instead of the store.
Kennedy said while he has seen this type of fraud before, he has never seen it happening at the level it is right now.
There have been about a dozen attempts in the last two weeks
alone. And those are just the ones that were reported to the JSA, he said, though he noted that only a few of the reported attempts have been successful.
“We are putting this out now because we see it as rampant,” Kennedy said of the alert the JSA issued Friday.
He said that the amount of information now available on the internet is a “very large” contributor to criminals’ ability to socially engineer scams today.
And while Kennedy acknowledges that businesses need to be present on the internet to market themselves today, he says jewelers should carefully consider each piece of information that goes online.
“I feel jewelers are putting far too much information out online,” he said. “The more you put out there, the more you are at risk.”
The JSA has five additional recommendations for jewelers and suppliers to help them avoid becoming a victim of this shipping scheme.
1) Employees need to confirm to whom they are speaking. If someone is on the line whom the employee does not know, he or she should excuse themselves immediately and say they will have to call them back. Employees also can call back after the order or request is made to confirm that it’s legitimate.
Either way, the employee should not use the number given to them by the caller and, instead, call the actual phone number of the business, obtained via Google or elsewhere.
2) Be wary of calls that come from blocked or “unknown” numbers.
3) Alert employees that they should not be fooled into giving out inappropriate information to callers asking questions about personnel or procedures. The perpetrators want to find out as much as they can about a supplier or retailer in order to sound legitimate.
4) Strictly limit the procedures that allow for a change of address on shipments. For example, some firms have only one person who can authorize a change of address or have told the shipping company that all packages on which an address change is attempted should be returned to them.
5) Kennedy also recommended Monday that jewelers or suppliers never give out tracking numbers for packages they are shipping.
“We are putting this out now because we see it as rampant,” Kennedy said of the alert the JSA issued Friday.
He said that the amount of information now available on the internet is a “very large” contributor to criminals’ ability to socially engineer scams today.
And while Kennedy acknowledges that businesses need to be present on the internet to market themselves today, he says jewelers should carefully consider each piece of information that goes online.
“I feel jewelers are putting far too much information out online,” he said. “The more you put out there, the more you are at risk.”
The JSA has five additional recommendations for jewelers and suppliers to help them avoid becoming a victim of this shipping scheme.
1) Employees need to confirm to whom they are speaking. If someone is on the line whom the employee does not know, he or she should excuse themselves immediately and say they will have to call them back. Employees also can call back after the order or request is made to confirm that it’s legitimate.
Either way, the employee should not use the number given to them by the caller and, instead, call the actual phone number of the business, obtained via Google or elsewhere.
2) Be wary of calls that come from blocked or “unknown” numbers.
3) Alert employees that they should not be fooled into giving out inappropriate information to callers asking questions about personnel or procedures. The perpetrators want to find out as much as they can about a supplier or retailer in order to sound legitimate.
4) Strictly limit the procedures that allow for a change of address on shipments. For example, some firms have only one person who can authorize a change of address or have told the shipping company that all packages on which an address change is attempted should be returned to them.
5) Kennedy also recommended Monday that jewelers or suppliers never give out tracking numbers for packages they are shipping.
More on Crime
The Latest
TrendsJul 10, 2026
Jade Trau Creates a Constellation of DiamondsThe “Constellation Plié” collar, our Piece of the Week, features diamonds arranged in a constellation of shining stars.
SourcingJul 10, 2026
CFO of De Beers’ Consumer-Facing Division Leaves Company Shaun Wills joined the company in 2024 and was chief financial officer of the De Beers Brands and Consumer Markets division.
Brought to you by
Wedding Band Trends 2026: Personalization Takes Center StageColored gemstones, artisan finishes, mixed metals, and meaningful details are shaping demand in bridal jewelry.
WatchesJul 10, 2026
Brilliant Earth Expands Into WatchesIn honor of its 20th anniversary, the jewelry brand has released a limited-edition collection of Swiss-made timepieces.
Weekly QuizJul 09, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
CollectionsJul 09, 2026
Boucheron’s New High Jewelry Collection Is an Ode to the Human Touch“Human Being” highlights the similarities and differences between us through five sets of jewelry that celebrate fine craftsmanship.
WatchesJul 09, 2026
Damiani Group Finalizes Acquisition of Baume & MercierRichemont will continue to provide operational services for the watch brand for a period while the group prepares to integrate it.
Brought to you by
Building the Future of Jewelry Retail: DCA Expands Education, Leadership Development, and Workforce SolutionsDCA is preparing the next generation of professionals by supporting workforce development, leadership growth, and career advancement.
AuctionsJul 09, 2026
Pharrell Williams’ Joopiter Hires Former Bonhams Exec to Head New Watch DivisionNate Borgelt will lead the digital auction house and content platform’s new division as head of watches.
Events & AwardsJul 09, 2026
Halstead Names 2026 Grant WinnerEnoch Platero, founder and designer behind Enoch Michael, is the first Native American jeweler to win the award.
Events & AwardsJul 09, 2026
AGS, GIA Name 2026 Beatrice Shipley Scholarship WinnerAGS also announced the recipient of its “Women in Leadership” scholarship.
MajorsJul 08, 2026
Kendra Scott Joins ‘Shark Tank’ As Permanent Investor The founder of the billion-dollar jewelry and lifestyle brand will debut as a full-time “Shark” on the upcoming season of the show.
SurveysJul 08, 2026
Signet Jewelers Falls 5 Spots on NRF’s ‘Top 100’ Retailers ListPlus, why retailers should be ready to adjust as the U.S. population may decline this year for the first time since the Great Depression.
MajorsJul 08, 2026
Richline Group Promotes 2 ExecsArien Gessner and Moss Makhoulian have been elevated into newly created roles.
ColumnistsJul 07, 2026
Peter Smith: Diamond Branding and the Origin ParadoxA podcast prompted Smith to share his views on where origin fits into the natural diamond story and the viability of branded diamonds.
Events & AwardsJul 07, 2026
JA Announces 2026 Impact Initiative RecipientsThe association selected eight recipients for the funding program, which is in its second year.
TrendsJul 07, 2026
Amanda’s Style File: Ruby, White and Blue Whether celebrating America’s 250th birthday or the USA’s World Cup run, July birthstone jewelry can double as a patriotic accessory.
CollectionsJul 07, 2026
Robinson Pelham Is Partying Like It’s 1996The “Summer of ’96” campaign and collection celebrate the year the brand was founded for its 30th anniversary.
SourcingJul 06, 2026
Gemfields CEO Sean Gilbertson Steps DownAfter eight years, Gilbertson is leaving his post at the mining company, which is currently facing a slew of operational challenges.
IndependentsJul 06, 2026
Bachendorf’s To Open Fifth Store In DallasThe new location is set to open this winter, featuring the retailer’s first rotating jewelry designer residency.
MajorsJul 06, 2026
Graff Names BTS Star Jung Kook as New AmbassadorThe pop artist appears in the latest campaign for the “Laurence Graff Signature” collection.
CollectionsJul 06, 2026
Pandora’s New Baroque Pearl Collection Is a Whimsical ‘Wonder’One-of-a-kind pearls take the shape of ice cream cones, frogs, submarines, and other imaginative charms.
SourcingJul 02, 2026
London Diamond Bourse Elects First Female PresidentCharlotte Rose said her election is “a sign that this is an industry capable of change.”
Supplier BulletinJul 02, 2026
Elevating Retail Showcases with Today's Necklace & Bracelet TrendsSponsored by Rio Grande Jewelry Supply
TrendsJul 02, 2026
Oscar Heyman’s Flag Brooch Celebrates AmericaThe American jewelry house, founded by Latvian immigrants, has been creating American flag brooches since 1917.
IndependentsJul 02, 2026
D. Geller & Son Partners with KSU Art Students on Store MuralThe artwork celebrates the Atlanta jeweler’s legacy and symbolizes its commitment to supporting local artists and its community.
Events & AwardsJul 02, 2026
Stratus Estate Buyers Offers Jewelers Turnkey Buying EventsIts team can evaluate jewelry and watches, as well as luxury handbags, artwork, and collectibles.
