IndependentsOct 16, 2025
Retailer Hall of Fame 2025: Jeffrey Zimmer Jeffrey Zimmer's decades of leadership at Reeds Jewelers are defined by integrity, a love of sourcing gemstones, and a heart for community.
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
AuctionsOct 16, 2025
Sotheby’s Introduces Custom Jewelry ServiceThe new high jewelry design and production process takes 30 days or less from concept to completion, the auction house said.
MajorsOct 16, 2025
Oscar Heyman’s Holiday Catalog Is Out, and It’s SpectacularThe holiday catalog for 2025 features never-before-seen images of more than 100 one-of-a-kind masterpieces.
Brought to you by
Protect Your Customers and Your BusinessYou deserve to know what you are selling–to protect your customers as well as your business and your reputation.
CollectionsOct 16, 2025
Foundrae Adds To ‘United in Love’ CollectionThe brand has released a second installment of its collection of traditional and non-traditional commitment heirlooms.
Weekly QuizOct 16, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
IndependentsOct 15, 2025
Retailer Hall of Fame 2025: Kathy CoreyCorey rescued New England chain Day’s Jewelers, preserving its legacy with strong people skills, pragmatism, and a “get-it-done” attitude.
Events & AwardsOct 15, 2025
‘Douriean Fletcher: Jewelry of the Afrofuture’ Opens at MADThe Museum of Arts and Design's new exhibition features 75 pieces by the designer, best known for her work in the “Black Panther” films.
Brought to you by
JA New York Fall Is Right Around the CornerThe upcoming show provides savvy retailers with the opportunity to stock their cases with best sellers in advance of the holiday season.
Events & AwardsOct 15, 2025
JCK, Luxury to Debut New Watch Section in Vegas Next YearTimepieces at Luxury will take place at The Venetian and, like Luxury, will be invitation-only for the first two days.
AuctionsOct 15, 2025
Christie's Announces New Jewelry Department LeadershipThe auction house named a new global head of jewelry, as well as a new head of the jewelry department for the Americas.
IndependentsOct 14, 2025
Retailer Hall of Fame 2025: Tom DixonAs chairman of Schwanke-Kasten Jewelers, Tom Dixon has been tasked with honoring the past and shaping the future of the family-run store.
Events & AwardsOct 14, 2025
Here Are the Winners of the BIJC, JA ‘Emerging Jewelers’ Grant Katty Villapando Lyte and Mica Rencher received a $10,000 grant for their business, Shimmer Culture LLC.
IndependentsOct 14, 2025
Day’s Jewelers Crafts Custom Jewelry for No.1 NBA Draft Pick Cooper FlaggThe parents of the Dallas Mavericks rookie bought their engagement ring at a Day’s store in Bangor, Maine, in 1997.
SourcingOct 14, 2025
Pragnell Debuts Kitulo Garnet Jewelry The UK-based brand sourced the gemstones, which are fully traceable, from an artisanal mining community in Tanzania.
CollectionsOct 10, 2025
Count Down to the Holidays With Astrid & Miyu’s Advent CalendarsThe trio of Advent calendars include a version with 18-karat gold and lab-grown diamond jewelry in a red lacquer jewelry box.
CollectionsOct 10, 2025
Piece of the Week: Marla Aaron’s ‘Nymphenburg Lock’Created in collaboration with Nymphenburg Porcelain, the lock is part of a four-piece collection that took two years to bring to fruition.
MajorsOct 10, 2025
Frederick Goldman Names New VP of SalesJewelry industry veteran Alisa Bunger has taken on the role.
SourcingOct 09, 2025
Feriel Zerouki Is Leaving De Beers The company and industry leader’s two-decade tenure with De Beers will come to a close at the end of the month.
AuctionsOct 09, 2025
This Fabergé Egg Could Crack $27M At Auction“The Winter Egg” set the world auction record for a Fabergé piece twice at previous Christie’s sales.
MajorsOct 09, 2025
Sy Kessler Buying Watch Batteries as Silver Hits Record High The company will pay 1.5x silver’s current spot price for each pound of silver oxide batteries submitted.
CollectionsOct 09, 2025
Katkim Launches First Men’s CollectionThe line includes a “Shadow” series crafted exclusively for the new men’s offering and reimagined styles from the brand’s core collections.
SourcingOct 09, 2025
Gemfields’ Mini Mixed-Quality Ruby Auction Garners $11MThe rough on offer was recovered from a newer area at the Montepuez mine.
SourcingOct 08, 2025
In ‘Storied Diamond,’ Jared Jewelers Is Emphasizing the Journey The retailer’s new collection of engagement rings and fashion jewelry is set with natural diamonds that are traceable via blockchain.
CollectionsOct 08, 2025
Emily P. Wheeler Shifts Into Neutral for Latest ‘Ombré’ CollectionThe champagne colorway in her newest “Ombré” collection combines white and trendy brown diamonds, a departure from her usual vibrant hues.
CollectionsOct 08, 2025
Tsuba Designs Inspire Monica Rich Kosann’s New CharmsKosann partnered with the Museum of Fine Arts, Boston, to create a set of necklaces inspired by the artwork on samurai sword handguards.
CollectionsOct 07, 2025
Jessica McCormack Looks to Sea Spirits for ‘Tempest’ CollectionThe brand’s first high jewelry collection, “Tempest” plays with movement while calling to mind the folklore of the sea.
SourcingOct 07, 2025
Columbia Gem House Announces ‘Opals for Outback Heroes’ FundraiserProceeds from its jewelry raffle will go to a volunteer-run fire and rescue group in the Lightning Ridge area of New South Wales, Australia.
