Thailand Law Library

by Thailand Lawyer

Like many tourist hotspots, Thailand attracts scammers looking to profit off unsuspecting foreigners. While most scams in Thailand inflict relatively minor damage, gem scams can cost considerably more. A gem scam is a scheme that targets tourists, often in popular destinations like Bangkok, Phuket, and Pattaya. Scammers lure you in with offers of high-quality gems at unbeatable prices and then sell you fake or worthless stones.

Let’s take a look at how Thailand gem scams work, how to avoid them, and what to do if you become a victim.

How Gem Scams in Thailand Work

There are several variations of the gem scam, but they typically follow a similar structure:

The Setup 

• Initial Approach: Scam artists strategically position themselves near popular tourist attractions such as Khaosan Road or the Grand Palace in Bangkok. They approach you in a seemingly friendly and helpful manner and may falsely inform you that the tourist site is closed for construction, a national holiday, religious festivities, or even just a lunch break.
• Alternative Proposition: Capitalizing on your confusion and potential disappointment, they offer an exciting alternative destination. This might be a visit to a “lesser-known temple” or, more importantly, a gem center with “exclusive deals.” This establishes them as helpful locals and fosters a sense of trust.
• Corroborating Stranger: You might encounter another seemingly unconnected individual (a student, businessman, or fellow traveler) who reinforces the scammer’s initial claims. In reality, they are accomplices working with the scammer to fool you. This interaction adds a layer of legitimacy to the scam. 

Transportation Trap

• Indirect Route: The initial scammer might offer to drive you or arrange a tuk-tuk ride to your next destination for an overly reasonable price. If you have not already agreed to go to a gem center, your driver will attempt to convince you along your journey. Tuk-tuk drivers are often incentivized with fuel vouchers and financial compensation if they bring you to the center.
• Isolation: The driver may deviate from your desired route, creating a sense of isolation and making it more difficult for you to get help or verify the information you’ve been given.

Illusion of Luxury

• Pretense of Legitimacy: Upon arrival, you are ushered into a seemingly professional establishment, selling jewelry and stones.
• “Exclusive” Offers: The salespeople offer you the chance to purchase purportedly high-quality gemstones at “wholesale prices,” often framed as a “government-sponsored export program” or a “limited-time opportunity.”
• Reinforce Reputation: The business may orchestrate a display of satisfied customers who praise their experiences with the establishment, either in person or with online reviews. Be wary of such testimonials, as these individuals may be paid by the scammers. 

High-Pressure Tactics

• Flattery and Emotional Manipulation: The salespeople may compliment your taste or knowledge, making you feel important and more likely to trust their judgment.
• Sell the Bargain: Scammers emphasize the low price compared to what you would pay in your home country. They may encourage you to buy in bulk to resell for profit back home.
• Addressing Doubts: The salespeople dismiss any concerns you raise with fabricated explanations or guarantees that they are unlikely to honor. For example, they may provide a fake government certification, assure you of their established network of international buyers to whom you can resell the gem(s), or even offer you an illegitimate money-back guarantee.

Closing the Deal

• Cheap Stones: The gems you are pressured to buy are made from cheap glass or synthetic materials, or are low-quality stones with inflated prices.
• Paying in Cash: To avoid potential chargebacks, the gem center might discourage credit card payments, pushing for a cash payment. In some cases, they may accept credit card payments intending to steal your card details. 
• End the Interaction: Once you have completed the purchase, the scammer’s demeanor might change. For example, they might offer free sightseeing trips to distract you from realizing the deception and limit your time to seek recourse.
• Shipping Scam: To prevent returns, they might offer to mail your “gems” directly abroad, eliminating the possibility of recovering your money.

How to Avoid Gem Scams

• Stranger Danger: Be wary of unsolicited offers near tourist attractions and verify any information you are told.
• Reasonable Rates: Reject purchases and ride fares that seem too low or too good to be true. Real gem shops very rarely offer sales, and “one day only” or “export special” deals are a scam.
• Do Your Research: If you plan to purchase gems while in Thailand, research reputable dealers in advance. Inspect items before you buy and hire a professional appraiser for extra certainty. Furthermore, the Thai government and monarchy do not operate any gem centers so you can be sure these are scams.
• Pay with Credit Card: Although there is no guarantee funds can be recovered after a scam, a credit card creates a paper trail that can be used to evidence the transaction and possibly recover losses. But, be sure not to let the salespeople take the card out of your sight to protect your card information. 

By following these tips and staying skeptical, you can safeguard yourself from gem scams in Thailand. Maintain a healthy level of caution when interacting with strangers, but don’t let this overshadow the genuine hospitality or legitimate gem industry Thailand has to offer.

What To Do if You are Scammed

Falling victim to the Thailand gem scam can be a disheartening experience. However, taking decisive action can increase your chances of recovering some of your losses. You can take the following steps for your best chance at recovery:

• Gather Evidence: Retain all of the purchased “gems”, receipts, and any associated documentation. These provide crucial evidence for pursuing a refund or potential legal action.
• Negotiate a Refund: You can attempt to negotiate a partial refund with the shop owner. While a full refund is unlikely, focus on retrieving a significant portion of your money. Emphasize your willingness to cooperate with the authorities and file a formal complaint if a reasonable settlement isn’t reached, but refrain from confrontation and aggression, as this can exacerbate the situation.
• Report the Incident: Promptly visit the nearest Tourism Authority of Thailand (TAT) office or contact the tourist police at 1155. File a report outlining the details of the scam.
• Contact Your Credit Card Company: If the purchase was made with a credit card, contact your issuing company’s fraud department to inquire about the possibility of a chargeback. If you suspect your card details might have been compromised, cancel your card immediately to prevent further unauthorized transactions.
• Retain Legal Counsel: Consult with a lawyer specializing in fraud cases. A lawyer can advise you on your legal options in Thailand, pursue all avenues to recover your losses, and help you move on from the incident.

Siam Legal is a full-service law firm with over 20 years of experience in Thai law. Our fraud advisors offer personalized comprehensive support, knowledgeable advice, and expert litigation services to help you recover from a gem scam.