How to avoid Internet scams in the Gem Trade

Natural Gem Exchange promotes conducting gem trade via the Internet and aims to build the most trusted marketplace for gemstones. Due to the size and type of the transactions conducted, gem traders should be extra cautious in there trade. Therefore, for centuries, the trade has been conducted only among the trusted parties having long time trading relationships. However, if they do not shift their business online now, we mean JUST NOW, they will be perished by the people who do. So, how do you weigh the risks and rewards and smoothly and safely switch over to the future of gem trading? As frontrunners, we believe that it is our responsibility to educate our community so that they can take actions to safeguard against threats and vulnerabilities. Today we are going to discuss a couple of widespread Internet scams.

Advance fee fraud

This starts with a really amazing deal. A very valuable gemstone is listed for sale for an unbelievable low price. Probably, the scammer will tell you that he is in a country where these gemstones are common or smuggled. The greed in our mind keeps on telling us to try this out. Once you initiated the conversation, the scammer will show you more details and will ask a little sum of money to get a gem certificate or get a local gem license so that he can ship it to you. In certain cases, he might even agree to send the stone without the full payment. But he will ask you for a small fee to get things prepared. You know what will happen next. You transfer the money and you will never be going to hear from that guy again.

The advance-fee scam comes in many forms. What you need to be safe from this is to have a little bit of awareness.

Golden opportunity scam

Are you familiar with these? "limited time", "golden opportunity", "many buyers are enquiring", "price increase due to another buyers bid", etc. This mostly targets newcomers to the industry. People who seek to get rich quickly. Scammers start publishing very valuable gemstones continuously. They list them and in a couple of days, they are sold. And all of a sudden he lists an unbelievable deal, 15 carats cornflower blue sapphire or 6-carat pigeon blood ruby, straight from his own mine. "Send me the money, I'll courier it tomorrow". Rest will be one of the greatest lessons in your life.

"What is this gemstone?" scam

This starts when the scammer asking "can anybody help me to identify this gemstone" and posting a photo or video on social media. The novice gem merchants jump in to help him and think that an expensive gemstone is at the hand of somebody who knows nothing about it. Then they see the opportunity to buy that for a very low price. The rest of the story is the same as in the previous cases. You end up paying money for nothing. 

What NGE is doing to prevent scams

The merchants and buyers in the NGE marketplace are carefully onboarded. We personally contact the sellers and do a basic verbal verification. As and when the merchant is conducting the business, we continue this verification process to higher levels of verifications. When a merchant started listing their gemstones for trade, depending on the number of gemstones and their values we do further verifications.

However, we strongly advise our sellers to contact us before conducting a high valued trade so that we can do a free through seller verification.

And not only that, for our premium sellers, we also provide NGE insurance and guaranteed returns aginst their trade capped at $10000 dollars. 

Technology plays a major role

On the other hand, we utilize the most modern security technologies to safeguard data and prevent attacks. We provide two-factor authentication for buyers and sellers on their request so that they can make sure their accounts are safer. Also, we store our data in highly secured data centres and never keep your information such as credit card numbers.

If you need further information regarding how to make sure your trade is genuine and risk-free, we are always ready to listen to you. Please drop a line

Rafael Green

NGE Education

Natural Gem Exchange's training and education department is dedicated to provide international standard trainging and eduction to all it's stakeholders including customers, partners, and employees.

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