Editor’s Note
This article examines the evolution of gemstone scams in Thailand, from simple beachfront hustles decades ago to the sophisticated, polished operations targeting tourists today. While the methods have modernized, the core deception remains the same. We advise readers to exercise extreme caution and only purchase gems from highly reputable, certified dealers.
Gemstone fraud in Thailand is as old as tourism itself. While a quarter of a century ago, colorful, worthless stones allegedly from the mines in Chantaburi province were palmed off to vacationers on Pattaya’s beaches as bargains, the black sheep among jewelry dealers today present themselves as reputable: they receive customers in wood-paneled salesrooms, offer refreshments, speak good English, and smilingly cater to the wishes of their foreign clients.
The business with unsuspecting, naive, and gullible vacationers is booming. The state tourism authority (TAT) admits that at least 60 dealers among the nationwide 10,000 licensed companies are solely intent on fraud. Last year, the TAT received 730 complaints, compared to 1,243 the year before. The authority estimates the damage at 63 million Baht in 2001 and 115 million Baht in 2000.
On the website of the Thai Gem Scam Group, it is stated that Thailand tourists are cheated out of 50 to 100 million US dollars every year when buying jewelry.
Thailand and its capital Bangkok are indeed a center for the global gemstone trade, but not every sparkling stone is high-quality. Foreign laymen are often sold cheap trinkets. Naturally, with the assurance that they can expect a small fortune for it in their home country. The fraud works more often than common sense would deem possible.
Embassy staff can sing a song about it. During the high season, three people seeking advice contact the German mission daily. However, the embassy can only offer limited help.
The information sheet on gemstone fraud from the Swiss representation states:
The frauds of organized gangs are similar down to the last detail. Taxi drivers or Bangkok’s tuk-tuk drivers pretend to offer particularly cheap rides because the government is supposedly distributing gasoline vouchers due to a Buddhist holiday. The driver promises to take the tourists to temples and other sights. During the ride, the Thai then stops at a jewelry dealer – allegedly to redeem the gasoline vouchers.
Or, during a city tour of temples and klongs, an English-speaking young man joins the tourists. He presents himself as a student or an employee of the city or state, entertains the foreigners, and offers to take them to a jeweler with a state license. There, gemstones and jewelry could supposedly be purchased more cheaply than in regular stores.
Or the vacationers “accidentally” encounter a well-dressed, reputable-looking Thai woman at a temple, who later introduces herself as a jewelry dealer and entices the foreigners with alleged government discounts and the possibility of duty-free import.
Her charm prevails. Later, in the jeweler’s rooms, the salespeople are very convincing. The tourists find it hard to resist. They pay amounts of 5,000 euros or more in cash or by credit card, but often return to their hotel empty-handed because they have fallen for a trick. Convincingly, the dealers explain that for customs reasons they cannot hand over the purchased stones immediately; they would be sent free of charge by post to the home address.
The shipped jewelry, the victims later learn, is worth only 10 to 20 percent of the promised value. No jeweler will want to buy it back.
Gemstones are cheaper in Thailand than in Europe.