The Gem Scam
If you have been cheated and what a refund
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List of gem shops involved in the scam
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The Scam
One of the most pervasive scams in Thailand is the Thai gem scam. Typically, a tourist meets a friendly Thai at a tourist attraction who eventually offers to take them to a "government" gem stone shop where the tourist is told about how they can sell Thai "blue sapphires" or other gems back home and make a 100%!p(MISSING)rofit. It is all lies, of course, and the tourist ends up with a pocket full of overpriced gems. Like Thais themselves, the scam is low-key and the touts are friendly rather than pushy. A rule of thumb for Thais is that "real" Thais do not just walk up to strangers and strike up a friendly conversation. Thais typically "speak when spoken to." If you are approached at a tourist attraction by a friendly fellow who just walks up and starts speaking to you, watch out!
Too many otherwise wonderful vacations have been ruined by this scam, so watch out. 2B has followed this scam online for nearly 5 five years and make no mistake--the authorities have done little to stop it. No official ever dares mention the "protected" gold shops that actually run the scams (UPDATE: Gold stores were finally mentioned in a Tourist Police brochure circa January, 2004). One of the tuk tuk drivers who takes victims to be scammed operates in front of the Tourist Information Centre and the local Police Station on Khao Sarn Road.
The funny thing is that over the years the reports are from the same locations--only the names of the stores change. Officials claim that just changing the name of the shop prevents them from doing anything to stop the scam. See our Family Tree of Corrupt Shops. As one shop owner bragged to some cheated tourists: "I'll reopen again, just like I have for 20 years!"
How it is done
This is a by-the-numbers scam. Most people have the exact same experience. It usually goes something like this:
1. You are riding in a tuk-tuk
2. The driver tells you that wherever you are going is closed for some reason.
3. The driver tells you he is specially trained to be helpful to tourists.
4. You are told the government has launched a promotion to sell gems to tourists.
5. In the course of riding around with the "friendly" tuk-tuk driver, you "accidentally" meet a well-dressed young man or an older, distinguished man.
6. The younger man claims he is a student. The older will claim he works for the government and shows you his government ID. (Thai IDs mean nothing. They are readily available for a small fee to anyone.)
7. The person you meet independently confirms the story the tuk-tuk driver told. (This is a nice touch.)
8. Eventually you ask to be taken to the "government" jewelry house and are told that you can make 100-150%!p(MISSING)rofit by reselling the gems back home. It seems okay since the seller writes something like "if everything is not ok we will offer a full refund" and puts an official looking stamp on it.
9. You've now been cheated by one of the oldest and most openly practiced scams in Thailand.
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Latest News
Gem scam story: Blue Dragon Factory Export Center - March 12, 2007
Gem scam story: Blue Dragon Factory Export Center - September 14, 2006
Blue Dragon success story - February 24, 2007
A reader reports: my fiance' and i have a bizarre story in relation to the blue dragon gem scam. As mentioned in all the stories we have read, the exact order of events happened to us and lead to the purchase of a sapphire/diamond engagement ring worth 1400 aussie dollars. Everything seemed fine and we were very happy.
On our return to Australia we found your website and could not believe what we were reading-that we had been scammed, we were devastated. More than anything we felt humiliated and embarrassed, as we are well traveled and generally street savvy.
The unique part of our experience is that we actually had not been scammed, we have had our engagement ring valued at a reputable and accredited jeweler here in Perth Western Australia and to our amazement the ring is worth 2800 aussie dollars- double what we paid.
i can't work this out, i am extremely happy and relieved but also completed puzzled. Do these organizations in Bangkok only rip off every second customer? and we got luck of the draw, or do they choose there victims carefully? so as not to rip off the wrong people.
i thought i'd share this experience and would be interested in any other views.
Gem scam story: Blue Dragon Factory Export Center - February 17, 2007 Blue Dragon scam - February 10, 2007
Nui writes: I just read your web page on the Thailand Blue Dragon Scam. Guess where I have been today? Anyway, I just thought you might like to have these photos that we took today to post on your website. They show the lucky Buddha, the temple and the outside.
We didn't buy anything - (thank you lucky Buddha!)
Anyway, thanks for your website and we will spread your message...
PS. While we were there, a couple had a printout of your website in their hands and were spreading your message loudly in the store. Just to let you know, this is about the 10th store we've been invited into in Bangkok in 5 days. Advise your patrons do NOT enter a tuk tuk in Bangkok AT ALL. Everywhere else is fine.
(Photo: Nui)
Gem scam story: Blue Dragon Factory Export Center - January 17, 2007
Gem scam story: Blue Dragon Factory Export Center - January 7, 2007
Gem scam story: SSS Jewelry changes its name is SNP Jewelry - December 27, 2006
Gem scam story: Blue Dragon Factory Export Center - December 23, 2006
Gem scam story: Blue Dragon Factory Export Center - December 17, 2006
Latest from the Thai Gem Scam Group - November 21, 2006
The Thai Gem Scam Group writes: ...we're working on clearing out a backlog of information that we've received. We'll be adding more stuff, but in the meantime, we have new pictures of people involved with SSS Jewellery, receipts of Piyanamee and we've also updated our information regarding Internal Trade in the hopes that someone else can repeat the experience we've added earlier today. You can see these on our site at the following links: Receipts - People - Internal Trade
Latest gem scam report - October 27, 2006
A reader reports: We have just returned from a trip to Bangkok, and unfortunately were involved in what we think was now a scam.
This is further confirmed after visiting your website and noticing that the place we bought the Jewelry from was mentioned.
Our experience is as follows: On our last day in Bangkok, after a lovely morning sightseeing, we were approached by a tout offering a tuck-tuck ride for 40 bahts taking us to various other tourist attractions, from near the Grand Palace, which was apparently closed. This tout took us over to a tuck tuck, and explained to the driver that we wanted to go to various places, and he was to wait for us. We thought this was a good deal, and so accepted. Our first stop was a Happy Buddha. It was very quiet when we arrived, and the driver told us to take our time. Upon entering the grounds, we were greeted by a gentleman who seemed very interested in where we were from etc. etc. After general smalltalk, he pointed out on our map a number of places that we might want to go to, one of them being The Oscar, which he said, was a wholesale jewelers, and for this week only, selling items to the public. We thought nothing of this, and then proceeded to enter the Buddha. Once inside, another man came in, and prayed to the Buddha, and then turned to us, and started to engage us in conversation. We found it quite moving, as he also told us he had just got married, as had we, and that this Buddha was lucky. He then told us he had also visited The Oscar, and it was a worthwhile visit, as today was the last day that they would be open to the public.
We returned to our tuck-tuck, and asked him to take us to The Oscar, on route to our next attraction, which he did.
Upon entering the store, we were greeted by a professional older lady, who explained the technicalities of precious stones, being the four C's etc.
We were obviously so taken in by the events of the afternoon, and after a great length of time, foolishly purchased a ring, which we now believe could be worth at least a third of what we paid for it. It was not until we returned to our hotel that we started to suspect that all was not as we had thought. As we had signed various papers, stating no refund was available unless the item was not genuine, then we felt there was nothing we could do. We did check with our hotel, and they advised us to go and get the ring valued, which we did, and this confirmed our suspicions.
We would be grateful if you could add this to your website to warn off other tourists, and possibly let us know if there is anything else we could do to prevent this happening again.
Latest scam from Yindee - September 30, 2006
A reader reports: I am writing this email with regards to a gem scam that my friends and I personally involved. On August 30, 2006 I went to Bangkok on holiday trips with family. A week earlier, my friends also went to bangkok and encountered similar gem scam. Another friends also went to Bangkok in May 2006 also encountered the gem scam by tuk tuk driver who bring them to gem store.
In the morning, we took a walk from Bangkok City Inn Hotel to Pratunam Centre, near World Trade Centre & Pratunam market. Upon reaching Pratunam Center, we were approached by a Thai security guard at Pratunam Centre told us that the day was the lucky Buddha day, opened once a month/ year and that we should go to the temple. He even asked a tuk tuk driver to drive us there.
Once we reached the temple and went inside, we were approached by another Thai saying that he is a a business man from US and told us that he has just brought gems from a wholesale gem store that was having a special promotion where they sold gems at wholesale prices to public. He claimed the gems could be resell at higher prices to "Poh Kong" and "Poh Heng" (renowned gems shops) and kept promoting Yindee gem store having 30%!d(MISSING)iscounts, only limited to buying one set at discounted price. He even shown us the receipt he purchased from the store and arrange tuk tuk to bring us to this gem store.
Upon reaching the gem store (Yindee Lapidary Co. Ltd., 1091/75-77 Petchburi Rd. Soi 33, Makasan Bangkok 10400 Thailand. Tel: 253-1540-1 Fax: 651-6784), we were told the same story about them being a wholesaler and that they were having a special promotion where they sold to the public at wholesale prices. So, we are trapped in the gem scam - overpriced gems were bought.
Actually, we also have some doubt to identify real tourist police as they just show us their ID and also recommend tourist to purchase gems. Is there any identification of tourist police?
I think that many tourists also trapped in this gem scam (refer) and hope that Thailand local authorities could help to minimise the cases with educational info. highlighted and distributed in tourist leaflets and maps, newspaper and transportation signboard like BTS station and bus station to alert tourists. I think more tourist maps in English with relevant alert should be display in airport too. Previous visit to Bangkok only found tourist maps in Japanese.
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Latest scam from Yindee - September 15, 2006
A reader reports: I am the lucky customer of YINDEE LAPIDARY unlike this lucky fellow that did not bite the bait. I am from Singapore and my story is similar to him except I was looking for the 4face buddha. For the hours, I have been pondering on WHY...I fell into it. Being street smart and experienced in life, I just do not understand. I posted my story here.
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"Tough Bangkok Experience for Whitey" - HollywoodMachine, November 17, 2005
Story about a tailor shop scam: “Forget it, man! I might as well just catch a PERSONAL AIRCRAFT to the river for that price!!”, I exclaimed.
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Latest scam from Yindee - August 29, 2006
A reader reports: Just came back couple days ago from Bangkok. on the 2nd last day of my trip 22 Aug 06, me & my gf met this Thai guy outside Isetan, world trade centre, at the 2 shrines. His opening line was talking about how to pray to an elephant god but his accent was quite thick so we din really catch what he was saying.
After that, he asked us where we were going (Pratunam market), he recommended us to go to pray to "Lucky Buddha" before going there. "Lucky Buddha" is opened only once a month to the public, so we thought we were really lucky & he went on to ask what we were working as & he said he been to S'pore a few x & he'll be going there nxt chinese new year as he has lawyer friends there, he's been to lucky plaza, sim lim etc. He even showed us his Thai ID. Thai No. 1 is short, fat, dark & in his 50s, speaks English with a thick accent like has phlegm in his throat.
Then he told us about this jewelry shop also only open once a month to tourists but they only limited to buying one set at discounted price, cause the shop is a wholesaler to big jewelry shops in s'pore like ang chang, poh heng etc & it charges 100%!e(MISSING)xport tax to them. Once again, we thought we were lucky.
He then called for a tuk tuk (told us to hire tuk tuk with only blue uniforms & yellow tags cause they're regulated... can anyone verify if it's true?) to take us to "Lucky Buddha" temple ie. Wat Disallongsaram (near Bangkok Palace Hotel), followed by the jewelry shop & finally our destination (Pratunam).
Upon reaching the temple which was like located inside a small road, the tuk tuk driver waited for us while we went in. It was a rather small temple with many stray dogs running around (minimum 30). We couldn’t really locate the door as we saw 2 wooden doors but they were closed. As we went round the corner, a Thai man appeared out of nowhere & we asked him where the entrance was. He said “oh u’re not thais?” & brought us in. My gf had noticed later on he was wearing socks with sandals despite his long sleeved shirt & pants attire.
After praying to the “Lucky Buddha” (come to think of it now, there was only this huge Buddha which looked kinda cramp inside accompanied by a few other statues, it seemed really run down compared to other temples), he told us it was 100 yrs old & only opened once a month to public cause other days of the month are for the monks to pray for the thai people.
Then he asked us how we got to know of this temple & of course we told him about thai man no. 1 (cause not many ppl will know about this place
.. yeah right), & where we were going next. He then told us about the same story about how the jewelry shop was giving discounts & only for tourist open once a month etc etc, in between asking us what jobs we held. (seems like checking out if u’re rich enough to buy jewelry)
He then pulled out a receipt from his pouch for a set of sapphire jewelry (like for ear rings, bracelet the lot) which was priced at $96,200 Baht or about US$2,600.00 (which was stated there, probably for potential prey to have an easier conversion). Told us he was a silk businessman flying to London morrow where he’ll sell it off at Harrods for twice the price or US$5,000. He actually had a loophole at one point but we din realize that time, ie. He mentioned only tourists could buy 1 set at discounted rates so how could he an authentic thai buy it at a discount. Thai No. 2 is slim & in his late 40s, he has got big bug eyes & as he talks u’ll see his eyes open quite big.
After we left the temple, the tuk tuk brought us to the jewelry shop “Yindee Lapidary Co Ltd”. The staff welcomed us warmly & spoke not bad English. The shop was empty except for a Caucasian family who were selecting gems. The boss, a thai Chinese in his 50s (with a big nose & long ears) would welcome us warmly & offered us drinks (saying even if you don’t buy, it’s ok as they’re registered with S’pore-Thai chamber of commerce, he’ll show you the book even). They’ll then proceed to educate you on how to select gems & how to tell a real one from a fake one, using a diamond tester (to convince you that your purchase is real).
At this junction, another guy (turned out to be a Singaporean !!!) who’ll come over & show his receipt to the boss (there’s other staff around but why only to the boss?) & they seemed to know each other well, like hi how are you etc? He’s in his 50s, slim, has gold bracelet & rings encrusted with diamonds on his hands, probably to impress you that he made $ through this method, when he talks he looks toothless but has teeth in the upper row.
He then chit chatted with us like asking us where we were from & say oh he’s from there too, later on breaking into our dialects to strengthen the “bond” with you. He’ll tell us the same thing bout him coming here to buy only 1 set with cert & all & selling it back to local gold shops for a profit, been here 3 x but his wife never saw it. He told us to tell the shop that we are buying it for personal use but after that we sell it off later. As he left he din seem to collect anything from the counter.
The staff would proceed to show us all the expensive sets of jewelry & when my gf enquired on individual pieces then did they show us separate pieces. We went down to view the cheaper pieces (so called cheapest sapphire ring was at S$580), but we did not have any intention on buying, so we left the place with just their namecard which they welcomed us back again (my a**).
We were very lucky in that we didn’t purchase any gems or forced to cause the gems you buy are not fake, they’ve certificates to prove & diamond testers but just that the prices have been marked up & are not as good quality as you think they are. We were even considering buying some for investment the next time round till my very good friend told me it was a scam & I looked it up...
Another gem scam report - August 24, 2006
Latest report: The Scam published in the www.2bangkok.com describes exactly how I had been cheated into buying a worthless sapphire for 160,000 Baht at the Blue Dragon Factory Export Center Co., Ltd. on August 14, 2006........We were planning to visit the Wat Pho when a 'friendly' Thai near the Grand Palace recommended to us (myself and my 3 nephews & niece) to take a tuk tuk around to the Thai Export for some great buys. We were then taken to the 'Happy Buddha' first where we ran into yet another 'friendly' Thai who 'insisted' that we must go buy some sapphire. So we went and spent 160,000 Baht on a 7.6 carat blue sapphire and thought the Thai people are so nice and friendly... little did we know we had been cheated so badly until we got home and found out similar stories in the web.
I love Thailand and believe most of the people there are honest. Unfortunately this sapphire scam has ruined my impression for Thailand as a favorite holiday spot and I for sure will share this story with all my friends and colleagues.
Gem scam - August 23, 2006
Latest report: I didn't realize that I got scammed by Blue Dragon until last Monday I found your website. I experienced the same story with others who got scammed...start from a student who told me a door to grand palace, a man (he said he works for grand palace) who told that grand palace is closed, he stopped tuk-tuk for me, recommend to go to Blue Dragon, then tuk-tuk driver went to toilet....it's all the same story with others !!!!!!! I am still so shocked at this moment. I've spent TB 29,000 at Blue Dragon and found out that the ring and pendant I bought worth no more than TB 5,000... I even gave a tips to the tuk-tuk driver and my name card to the young man telling him that he can contact me when he visits...
There is agreement letter that I signed saying that Blue Dragon will provide 80%!r(MISSING)efund if purchase not more than 3 months, 70%!i(MISSING)f more than 3 months but less than 1 year, no refund after one year. But to be honest I don't know when I can afford to go back to Bangkok, also doubt whether they really will give me the refund after I read from your web about the violence happened during refund negotiation. I checked with local shop, the gems worth less 1/4 price.
Gem scam corner - April 19, 2006
Above is the wall bulge at Wat Pra Kaew on Naphralan Road where gem scam touts are allowed to stop tourists within meters of the entrance to the temple. Within sight and earshot of guards at the entrance, the touts tell tourists the temple is closed and hustle them into tuk-tuks for "free" tours of the city that end at gem scam shops like SSS Jewlery and Blue Dragon. It is fascinating to watch as temple guards view tourist after tourist being whisked away to gem scam shops.
In the past, gem scam stores were forced to change location and names, but during the TRT government years, gem scam shops seem to have enjoyed an immunity from having to open under new names or change location. This could be because, as with other problems, the government simply declared the gem scam problem solved.
Google Earth Placemark showing the site - Download Google Earth
SSS Jewelry foiled! - April 17, 2006
A reader reports: I just would like to thank you. Thanks to your website I succeeded to get a refund at SSS Jewelry after a gem scam.
The story was the same as all the others. I'm French, and a friendly French guy told me how lucky I was to be there, etc...
It was the 1st of December 2005.
I bought for US$ 3000 just before living to Cambodia Vietnam and Laos for almost 2 months. It's only one month later, in Hanoi that I've discovered the scam, thus I flew directly to Bangkok to try to get a refund on the 31th of December, what a great new year's day!
Actually, the gems were in a safe in SSS and I only had a lousy receipt.
I've decided to make a report at the Tourist police. Police officers were very helpful, I've made a report and they phoned SSS, then I had to talk to the manager through the phone. I told them that I will stay in Bangkok in front of their shop until I get a fully refund. She was hard to negotiate with. After a few phone calls we sort out with a 95%!r(MISSING)efund.
They came to the police, and give me a bank voucher with an agreement paper to sign. Two weeks later the transfer was not done. I had to phone again (I live in Singapore) to put pressure telling I was still in Bangkok (I was actually in Singapore) and that I will have to go to the police again. I eventually get the refund one week following the last call.
They don't like to go to the police so much, so we have to use it.
I would like to add that French embassy is really useless since they just told me Nobody couldn't do anything. It's a shame.
Thanks so much for reporting it and giving us some advice to get back our money. I've been a bit unaware to leave so much money there.
I still like Bangkok, charming city, it's a pity that there such a scam.
Older news
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Accounts of the gem scam
What do we mean by "Gem Shop Locations involved in the scam?" - Shops that have been known to use touts at tourist attractions to lure shoppers to their stores with false claims of huge discounts and promises that money can be made by reselling the gems back home. The gems purchased are genuine, but overpriced--sometimes many times their actual retail value.
Also: List of gem shops involved in the scam
Piyamanee - December 20, 2005
Gem scam flourishing - Why the authorities don't crack down - December 23, 2004
Bangkok Royal Gems & Jewelry: "Two Friendly Men" ruin a vacation
Bangkok Trade Center: A typical tale
Benjarong (March 8, 2002)
Blue Dragon (April 2, 2004)
Blue Dragon (May 17, 2004)
Burapa Lapidary (March 28, 2002)
Christie's Lapidary (October 30, 2002)
Komkien Gems and Jewelry (January 4, 2002)
Komkien Gems and Jewelry (January 29, 2002)
Leela Lapidary & the new Tourist Police Chief (August 11, 2003)
Mahachai (October 19, 2002)
Ma Mere claims more victims
Marin Gems Company Limited (March 14, 2002)
Orchid (November 11, 2002)
Siam (formerly Komkien) (July 30, 2002)
S.S.S. Jewelry Limited Partnership (May 14, 2004)
Sukothai Jewellers? They've been closed so kiss your money goodbye! (February 5, 2002)
TGJ Thai Center Co. Ltd. (October, 2000)
TGJ Thai Center Co., Ltd. (August, 2000)
Thai Mikimoto scam account I (December 18, 2001)
Thai Mikimoto scam account II (January 10, 2002)
Thai Mikimoto scam account III (January 11, 2002)
Thai Mikimoto scam account IV (January 22, 2002)
Thai Royal Gems: Gem deals are too good to be true
Universal Gems and Jewelry Export Co. Ltd (May 12, 2002)
Vandee Gems Gallery (August 9, 2002)
Vandee Gems Gallery (AKA The Export Centre) (July 22, 2002)
Vandee Gems Gallery (June 13, 2002)
Yindee Lapidary (November 30, 2002)
Yindee Lapidary (November 2, 2002)
Many more shorter reports are on the older news page
One day in Bangkok: Nine tourists/1,204,320 baht scammed/police refuse to help - (October 17, 2002)
Taxi drivers help with the scam (June 6, 2002)
Foreigners now helping with the gem scam
Just Embarrassing... (efforts to stop the scam)
Gem scam account: Another experience that's not quite like the rest
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Back When...
When we first started following the scam in 1990, it was almost always based around blue sapphires. Many even called the scam the Thai Blue Sapphire scam. The story went that there were lots of cheap sapphires being smuggled in from Burma and Cambodia that foreigners could buy, bring home, and make a fortune. Since then the type of gems mentioned in the scam has become more varied.
Left: Tipnapa Ltd., Part. was the first gem scam shop we investigated in 1992. The shop is long gone, but was located not far from the Vandee shop.
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Links
The Thai Gem Scam Group - website created by a group of tourists who want to end the scam
Tourism Authority of Thailand Gem-buying page - "Buying gems or jewellery to resell at double or triple the purchase price is an impossible proposition under any circumstances and should not be attempted."
Thai Gem and Jewelry Traders Association
Tourism Authority of Thailand warnings about the scam
Bangkok Post has an in-depth article (August 21, 2000) on the scam with lots of good background: Gem deals are too good to be true
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