A recent update from the Gemological Institute of America (GIA) stated that of the 1,042 reports it invalidated last month, only 175 of the associated diamonds had been returned for re-examination.
To encourage returns, the GIA announced it would be offering a free service to check the authenticity of grading reports issued between November 2014 and October 2015, the period during which the reports were suspected of being altered.
“Anyone with a GIA grading report originally issued in that timeframe who is concerned about the accuracy of the report may submit the original report and the referenced diamond to any GIA location for a confirmation service at no charge,” the statement explained, noting that the service would be available until 30 January 2016.
“It is imperative that all of the diamonds and their reports be returned to GIA for examination to remove the fraudulently altered reports from the market,” the statement added.
“The diamond trade must hold those who would commit such fraudulent acts accountable for their actions. The co-operation of the trade is vital as GIA works to fully address this fraud.”
Investigation ongoing
As previously reported by Jeweller, the GIA invalidated 1,042 grading reports in October after discovering that external parties had altered the grading information by remotely hacking into the organisation’s computer system.
Two former employees of Tata Consultancy Services (TCS) – the contractor responsible for supporting the GIA’s databases – were arrested for making the unauthorised changes, and the GIA also suspended the client accounts through which the questionable diamonds had been submitted.
Separately, online diamond trading network RapNet also suspended 10 of its members in relation to the crime.
The GIA indicated it was continuing to work with TCS and the Indian police on the investigation.
India’s Gem and Jewellery Export Promotion Council (GJEPC) and the Bharat Diamond Bourse recently announced they would also be supporting the inquiry.
“Based on the seriousness of the issue, GJEPC and Bharat Diamond Bourse have jointly constituted a standing committee to look into the matter,” GJEPC chairman Praveenshankar Pandya stated.
“In order to better understand the intricacies of the matter, the committee has individually met some of these parties over the past three weeks and also held extensive meeting with senior officials from GIA and TCS.”
Bharat Diamond Bourse president Anoop Mehta added, “The matter is now under police investigation and the results of the investigation are awaited. Meanwhile, we assure the trade that we are viewing the issue very seriously. If any member of the industry is found to be guilty, appropriate and stern action will be taken by both the associations.”
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