Bangkok Gem Scam

Name of Scam: The Gem Scam

Scam Setup: You are visiting the Grand Palace or one of the popular temples in Bangkok and a friendly Thai person tells you that it is closed (for lunch, for the day, for repairs, etc) but kindly offers to direct you to another amazing attraction nearby. He’ll even summon a tuk-tuk to take you and tell the driver, in Thai, exactly where you need to go.

Upon arriving at the alternate tourist attraction you’ll run into another friendly person who will be very happy you have come to his country and will seem genuinely curious about you. He will mention that you have come at just the right time because the Thai government is having some sort of special tax-free promotion on precious gems. Normally you’ll be told that you can sell the gems back in your own country for at least double what you purchase them here for.

The mark either takes the bait right there or the friendly Thai person will offer to direct you to another amazing tourist attraction nearby and summon a tuk-tuk for you. Surprisingly you meet another person at the next tourist attraction who basically tells you the same story as the last guy about the Thai government promotion.

Scam Analysis: There is no Thai government tax-free promotion. The gems you end up buying are of the poorest quality and worth less than half what you will be charged.

All of the people you will have met during this scam are in on it and taking a cut. The tourist attraction you originally set out to see is probably not closed at all. It’s a setup so they can put you into the hands of a tuk-tuk driver who will take you to the next tourist attraction which signals the friendly person you meet there.

This is probably one of the oldest and most infamous scams going on in Thailand. Greed wins over common sense and people spend thousands of dollars on precious gems that aren’t that precious. There is even a Wikipedia entry on this particular scam.

It really is a shame that this goes on in full view of the Thai police. They will stand idly by when you are told the Grand Palace is closed knowing that you’re being set up in a scam. And once you purchase the gems the Thai police will not help you at all since you have made a valid purchase. As far as they’re concerned if you were stupid enough to pay twice what something is worth then the seller has committed no fraud.

Normally Targets: Tourists who visit the standard tourist attractions

Prevention: When approached by a “friendly Thai” in front of a tourist attraction and told it’s closed, check for yourself. While Thais are generally helpful if you approach them and ask them a question (i.e. How do I get to the Emerald Buddha from here?), very few Thais would initiate a conversation with a stranger on the street. They would be far too intimidated and shy about their English language skills.

If you do find yourself in the middle of the scam (you’ve ignored this warning and taken the tuk-tuk ride), do not feel obligated to buy anything. Walk away. There is nothing they can do to you is you walk away.