Thai Gem Scam
Encyclopedia
The Thai Gem Scam is a confidence trick
performed in Bangkok
, Thailand
as well as other cities in the country. It is one of the most pervasive scams in Thailand. Most of the shops are gold or jewelry shops. It has been alleged that this scam has been operating for the past 20 years, sometimes in the same premises. It has been suggested that individuals in the Royal Thai Police
and even politicians protect this scam. The scam was demonstrated on an episode of the BBC
series, The Real Hustle
, except the hustlers used a tourist hot-spot in Ibiza
as opposed to Thailand.
s and con men
present the mark with an opportunity to profit from buying discount gems from a jewelry shop. The mark is convinced that he can buy gems at duty free price and bring them overseas for a threefold or more profit. Through a network of helpers, each of whom tells the mark bits of information, the mark is guided to the jewelry shop.
Other scams include fake Thai Mikimoto certificates.
Once in a store, a variety of selling tactics are employed, including bait and switch
, and "educating" gemstone novices about "fake gems" which are in fact real, and selling them "real gems" which are in fact fake.
Confidence trick
A confidence trick is an attempt to defraud a person or group by gaining their confidence. A confidence artist is an individual working alone or in concert with others who exploits characteristics of the human psyche such as dishonesty and honesty, vanity, compassion, credulity, irresponsibility,...
performed in Bangkok
Bangkok
Bangkok is the capital and largest urban area city in Thailand. It is known in Thai as Krung Thep Maha Nakhon or simply Krung Thep , meaning "city of angels." The full name of Bangkok is Krung Thep Mahanakhon Amon Rattanakosin Mahintharayutthaya Mahadilok Phop Noppharat Ratchathani Burirom...
, Thailand
Thailand
Thailand , officially the Kingdom of Thailand , formerly known as Siam , is a country located at the centre of the Indochina peninsula and Southeast Asia. It is bordered to the north by Burma and Laos, to the east by Laos and Cambodia, to the south by the Gulf of Thailand and Malaysia, and to the...
as well as other cities in the country. It is one of the most pervasive scams in Thailand. Most of the shops are gold or jewelry shops. It has been alleged that this scam has been operating for the past 20 years, sometimes in the same premises. It has been suggested that individuals in the Royal Thai Police
Royal Thai Police
The Royal Thai Police are the national police of Thailand.-About:Primary responsibility for the maintenance of public order through enforcement of the kingdom's laws was exercised by the Thailand National Police Department , a subdivision of the Ministry of Interior...
and even politicians protect this scam. The scam was demonstrated on an episode of the BBC
BBC
The British Broadcasting Corporation is a British public service broadcaster. Its headquarters is at Broadcasting House in the City of Westminster, London. It is the largest broadcaster in the world, with about 23,000 staff...
series, The Real Hustle
The Real Hustle
The Real Hustle is a BBC television series made by Objective Productions and written by Alexis Conran and Paul Wilson. The show demonstrates confidence and magic tricks, distraction scams and proposition bets performed on members of the public by presenters Conran, Wilson and Jessica-Jane Clement...
, except the hustlers used a tourist hot-spot in Ibiza
Ibiza
Ibiza or Eivissa is a Spanish island in the Mediterranean Sea 79 km off the coast of the city of Valencia in Spain. It is the third largest of the Balearic Islands, an autonomous community of Spain. With Formentera, it is one of the two Pine Islands or Pityuses. Its largest cities are Ibiza...
as opposed to Thailand.
The scam
A network of toutTout
In British English, a tout is any person who solicits business or employment in a persistent and annoying manner...
s and con men
Confidence trick
A confidence trick is an attempt to defraud a person or group by gaining their confidence. A confidence artist is an individual working alone or in concert with others who exploits characteristics of the human psyche such as dishonesty and honesty, vanity, compassion, credulity, irresponsibility,...
present the mark with an opportunity to profit from buying discount gems from a jewelry shop. The mark is convinced that he can buy gems at duty free price and bring them overseas for a threefold or more profit. Through a network of helpers, each of whom tells the mark bits of information, the mark is guided to the jewelry shop.
- A tout will be on the lookout at popular tourist spots like the Grand PalaceGrand Palace, BangkokThe Grand Palace is a complex of buildings in Bangkok, Thailand. It served as the official residence of the Kings of Thailand from the 18th century onwards. Construction of the Palace began in 1782, during the reign of King Rama I, when he moved the capital across the river from Thonburi to Bangkok...
, Wat PhoWat PhoWat Pho , is a Buddhist temple in Phra Nakhon district, Bangkok, Thailand. It is located in the Rattanakosin district directly adjacent to the Grand Palace. Known also as the Temple of the Reclining Buddha, its official name is Wat Phra Chettuphon Wimon Mangkhalaram Ratchaworamahawihan...
, Khaosan RoadKhaosan RoadKhaosan Road or Khao Sarn Road is a short street in central Bangkok, Thailand. It is located in the Banglamphu area of about 1 km north of the Grand Palace and Wat Phra Kaew....
, Siam SquareSiam SquareSiam Square is a shopping and entertainment area in the Siam District of Bangkok, Thailand. The area connects to other shopping centres and links to the other shopping districts by sky bridge, such as Siam Center/Siam Discovery Center, MBK Center, Siam Paragon, Ratchaprasong shopping district and...
, or other temples or tourist attractions in Bangkok. (Also, the scam may often be initiated by a tuk-tuk driver.) The tout will be dressed as a student or gentleman and will approach the mark to tell him the place he is about to visit is closed today because of some made-up holidayPublic holidayA public holiday, national holiday or legal holiday is a holiday generally established by law and is usually a non-working day during the year....
. The tout, taking advantage of the Thai people's reputation for friendliness, may strike up a conversation, asking where the mark is from, and if this is his first time in Bangkok. The tout will also tell the mark that a certain tuk-tuk waiting nearby is cheap or even free because it has been sponsored by the tourism ministry and can bring him to other temples elsewhere to visit. Sometimes this gentleman finds out which country the mark is from and informs the con man at the next layer about it. - If the mark gets on the tuk-tuk, the driver will bring him to a secluded temple in the city, drop him off, and wait for him to return.
- When the mark walks into the temple, there will be a gentleman praying inside. That person will tell him about a scheme by the government (usually so called Thai Gem Expo) which allows people to buy jewelry duty free and make a profit when the gems are shipped to their home country, adding that today is the last day of this scheme.
- The tuk-tuk may take the mark to another temple, where another person (sometimes a Thai, sometimes a Westerner) tells the same story, building up the mark's confidence through a seemingly "independent" verification. If the mark is interested, the person will tell the tuk-tuk driver to take him to the jewelry store.
- At the shop the mark will be pressured to buy jewelry. If the mark purchases the jewelry, the gem will be packaged and shipped directly to the mark's address in his home country so that he will not have a chance to get the gem appraised or return it for a refund. In the purchase process the mark may be told to go to a nearby gold shop to purchase gold to be exchanged for the gem - this money launderingMoney launderingMoney laundering is the process of disguising illegal sources of money so that it looks like it came from legal sources. The methods by which money may be laundered are varied and can range in sophistication. Many regulatory and governmental authorities quote estimates each year for the amount...
ensures that any stop-payment on the part of the mark will not affect the gem store's profits. - The mark returns to his home country, only to find the jewelry to be worth far less than he paid for it.
Other scams include fake Thai Mikimoto certificates.
Once in a store, a variety of selling tactics are employed, including bait and switch
Bait and switch
Bait-and-switch is a form of fraud, most commonly used in retail sales but also applicable to other contexts. First, customers are "baited" by advertising for a product or service at a low price; second, the customers discover that the advertised good is not available and are "switched" to a...
, and "educating" gemstone novices about "fake gems" which are in fact real, and selling them "real gems" which are in fact fake.
External links
- The Bangkok Gem Scam - The Daily Mail
- Malaysians falling prey to Bangkok gems scam - The StarThe Star (Malaysia)The Star is an English-language, tabloid-format newspaper in Malaysia. It is the largest in terms of circulation in Malaysia, according to the . It has a daily circulation of between 290,000 to 300,000...