Crime

Professional Gangs Sent Industry Dollar Losses Soaring in 2019

CrimeDec 17, 2020

Professional Gangs Sent Industry Dollar Losses Soaring in 2019

Overall, though, the number of crimes was essentially flat and for the first time in decades, no industry personnel were murdered while on the job.

New York—The U.S. jewelry industry saw dollar losses from crime almost double last year, driven by a spike in the number of organized, professional gangs pulling off multimillion-dollar burglaries.

According to the annual crime report for 2019 compiled by the Jewelers’ Security Alliance, dollar losses due to crimes against the industry totaled $101 million in 2019, up 89 percent from $53.4 million in 2018.

The last time annual industry losses topped $100 million was 2009, JSA statistics show.

Burglary losses were the biggest contributor to the jump, more than tripling from $11.6 million in 2018 to $40.5 million in 2019.

JSA President John J. Kennedy said a surge in the number of burglary gangs from South America, particularly from Chile, operating in the United States was the main driver behind the spike.

These crews are sophisticated.

They can disable entire electrical systems in jewelry stores—something jewelers were well aware of last year, as JSA sent out a number of alerts about jewelry stores having their power lines cut—knocking out both the alarms and the cameras.

Once inside stores, these gangs can also get into safes, enabling them to essential clean out a store’s entire inventory and make off with millions.

JSA’s report shows that the number of safe attack burglaries more than tripled, increasing from 13 in 2018 to 44 in 2019. The average loss from a safe attack burglary grew from $221,000 to $491,000.

“Most jewelers do not have adequate safes,” Kennedy noted. “The ratings [the safes] have are too low.” 

He also pointed out that it doesn’t take a lot of gangs to drive up dollar losses in the jewelry, where the total number of crimes committed against the industry per year—in 2019, 1,438—is relatively low when compared with the overall scope of crime nationwide.

“We’re not talking about huge numbers compared with car thefts or commercial break-ins. You’re talking about a relatively small number of cases,” he said. “A small number of gangs can drive a big increase in dollar losses, and that’s what we had.”

While safe robberies and other high-dollar heists caused losses to soar last year, overall 2019 was not a particularly violent or unsafe year for the U.S. jewelry industry.

The number of crimes committed against the industry was essentially flat year-over-year, 1,441 in 2018 compared with 1,438 in 2019. 

And JSA recorded zero homicides of jewelers, which is rare and hasn’t happened in decades. 

JSA released its annual crime report for 2019 earlier this month. 

Normally published in the fall, pulling it together this year was “particularly challenging” given the disruptions caused by COVID-19, Kennedy said.

 Related stories will be right here … 
 
JSA Senior Crime Analyst Ryan Ruddock and Vice President Scott Guginsky authored the report.  

Other highlights include the following.

— Smash-and-grab robberies also contributed to the spike in dollar losses, Kennedy said, as jewelers stand to lose a lot when criminals begin destroying showcases full of product. 

The number of smash-and-grabs was essentially flat year-over-year, 129 in 2018 vs. 130 in 2019. Nearly half of them (59) happened at mall jewelry stores.

 — While there were no homicides of jewelry industry personnel on the job in 2019, one customer, two bystanders and three robbers were killed. 

— The number of three-minute burglaries (so named because that’s how long they take to commit) increased 11 percent year-over-year, from 134 to 148, with the average loss from these incidences rising from $21,000 to $27,000. 

B3Ms usually happen in the middle of the night by smashing through a glass front door or window of a store. 

— The number of grab-and-run thefts was down slightly year-over-year, slipping 4 percent from 641 to 616. While the average loss from a grab-and-run is around $10,000, there was one in Washington state that cost a jeweler $183,000. 

Grab-and-runs made up the bulk (72 percent) of all thefts in 2019. 

— JSA received one report of a major trade show loss, $400,000 at a trade show held in Los Angeles in January of last year. 


Looking ahead to 2021, Kennedy said he expects little activity in the first part of the year as people stay home to weather another wave of COVID-19 and stores potentially are forced to closed again.

“I can’t predict the future but if I were to look into my crystal ball, I would say in the first part of the year, it’s going to be quiet again,” he said.

But he expects that to change in the back half of the year, as criminals who have been dormant for months will be in need of money.

“If ‘19 was any harbinger, we can say that 2021 might [bring] very significant losses,” Kennedy said.

“Jewelers should be very careful to make sure their alarm systems work. They should test them and they should make sure their whole premises is covered.”

A copy of the entire report is available on the JSA website.
Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.
tags:

The Latest

National Jeweler columnist Peter Smith
ColumnistsJan 21, 2025
Peter Smith: Sales Training’s Dirty Little Secret

Peter Smith pulls back the curtain on the often misinterpreted, and sometimes maligned, world of sales training.

Lord Jewelry brown and white diamond ring
TrendsJan 21, 2025
Amanda’s Style File: Decadent Mocha Mousse

Pantone’s 2025 Color of the Year takes the form of jewelry through gemstones and enamel that look just as delicious as mocha mousse.

Charms from designer Jenna Blake
Policies & IssuesJan 21, 2025
These Designers and Retailers Are Raising Money for LA Wildfire Relief

From raffles to auctions to donations, the industry is working to aid charities in Los Angeles amid the raging wildfires.

Resolutions - 2025.jpg
Brought to you by
3 New Year’s Resolutions for Jewelry Lovers

The new year feels like a clean slate, inspiring reflection, hope, and the motivation to become better versions of ourselves.

Diamonds Do Good
SourcingJan 21, 2025
Diamonds Do Good Adds 2 Board Members

Julia Hackman Chafé and Monica Elias have joined the organization’s board of directors.

Weekly QuizJan 16, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Bucellati necklaces
FinancialsJan 17, 2025
Richemont’s Jewelry Sales Rise 14% in Holiday Quarter

The company, which owns Cartier and Van Cleef & Arpels, had a record Q3, with sales topping $6 billion.

Picchiotti Classic Blue and Green Necklace
CollectionsJan 17, 2025
Piece of the Week: Picchiotti’s Transformable ‘Classic Blue and Green’ Necklace

The necklace features a sapphire drop weighing more than 9 carats that detaches to transform into a ring.

ride_or_die_1872x1052.png
Brought to you by
A Diamond Is Forever Celebrates "Forever Present" Holiday Campaign

A Diamond is Forever hosted a holiday celebration in honor of their new marketing campaign, ‘Forever Present.’

Jameel Mohammed
MajorsJan 17, 2025
Tiffany & Co., CFDA Name First Winner of Jewelry Designer Award

Jameel Mohammed, founder of Afrofuturist brand Khiry, will receive a cash prize and a one-year paid fellowship with Tiffany & Co.

Gold jewelry boxes with Lux Bond & Green logo
IndependentsJan 16, 2025
Lux Bond & Green to Open Sixth Location

The 127-year-old jeweler is planning to open a new store in Mystic, Connecticut.

Timex National Park Collection
WatchesJan 16, 2025
Timex Launches Collection of National Park Watches

The watches’ dials feature artwork celebrating the vibrant energy and unique landscapes of six of America’s national parks.

Elizabeth Taylor diamond line bracelet
AuctionsJan 16, 2025
Elizabeth Taylor’s Diamond Line Bracelet Going up for Auction

Offered by U.K. auction house Woolley & Wallis, the yellow diamond bracelet was a gift from Taylor’s good friend Michael Jackson.

JCK open registration graphic
Events & AwardsJan 16, 2025
JCK Las Vegas 2025 Open for Registration

The jewelry trade show returns to The Venetian Expo and The Venetian Resort in Las Vegas from June 6 to 9.

Iris Apfel
EditorsJan 15, 2025
The Jewelry I’d Bid On in Christie’s Iris Apfel Auction

Associate Editor Natalie Francisco highlights her favorite fashion jewelry pieces from the upcoming “Unapologetically Iris” auction.

Macy’s Herald Square New York City store
MajorsJan 15, 2025
Macy’s to Close 66 Stores as Part of Turnaround Strategy

The closures are part of the retailer’s plan to close 150 locations over a three-year period.

Jewelers Vigilance Committee Americans with Disabilities Act guide cover
Policies & IssuesJan 15, 2025
JVC Debuts Guide to Americans with Disabilities Act Compliance

The online guide is available for free and written with the jewelry industry in mind.

Jose Hess Design Award Trophy
Events & AwardsJan 15, 2025
Jose Hess Design Awards Open for Submissions

The awards honor the late Jose Hess, a founding member of AJDC and an award-winning jewelry designer.

Susan Jacques
GradingJan 14, 2025
GIA CEO, President Susan Jacques to Retire at the End of 2025

The grading lab said the search for her successor is underway.

Jewelry designer and National Jeweler guest columnist Jules Kim
ColumnistsJan 14, 2025
Jules Kim: Building Bridges Between Creators and Industry

In this special op-ed, designer Jules Kim calls on big brands to collaborate with independent creators instead of copying their designs.

Henry A. Hänni
GradingJan 14, 2025
Former SSEF Director Henry A. Hänni Dies

A pioneering figure in gemology, he is remembered for his spirit of generosity, curiosity, and joy.

Woman wearing rings on both hands
FinancialsJan 14, 2025
Signet Jewelers Lowers Q4 Guidance After Holiday Sales Fall Short

The peak selling days leading up to Christmas did not meet the jewelry retailer’s expectations.

Edouard Schneider
MajorsJan 14, 2025
Edouard Schneider Joins Messika as Chief Brand Officer

Schneider brings over 20 years of luxury and fashion industry experience to his role as a key member of the brand’s global leadership team.

Gemfields emeralds
SourcingJan 13, 2025
Zambia Reinstates 15% Export Duty on Precious Gemstones, Shocking Gemfields

Gemfields said the Zambian government revoked the 2019 suspension of the tax with no warning.

Woman’s silhouette with smart ring on finger
TechnologyJan 13, 2025
Ultrahuman Unveils Luxury Smart Ring

With versions in 18-karat gold and platinum, the wearables company is blending health technology and fine jewelry.

Brandee Dallow
Policies & IssuesJan 13, 2025
Brandee Dallow Elected President of Ethical Metalsmiths

The executive brings more than two decades of industry experience to the role.

Camille Zarsky and curated necklaces
IndependentsJan 13, 2025
The Seven Pops Up in Palm Beach

The New York City-based retailer is bringing its curation of jewels to a pop-up shop at Love Binetti in Palm Beach, Florida.

Jewelers Relief Fund logo
Policies & IssuesJan 10, 2025
Jewelers Relief Fund Reopened to Aid Victims of LA Fires

Created by JA and DCA, the fund is collecting money for jewelry businesses damaged by the wildfires in Los Angeles County.

×

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