Diamond dealers are failing to protect themselves against diamond swapping, and are instead waiting until an expensive loss occurs before taking action, equipment suppliers have warned.
The switching of natural diamonds with synthetics or other lower-value goods is a common phenomenon to which many traders are oblivious, said Dror Yehuda, president of Israel-based Yehuda Diamond Company. That company makes the Sherlock Holmes scanner, which detects laboratory-grown diamonds created using both chemical vapor deposition (CVD) and the High Pressure-High Temperature (HPHT) technique.
When an Israeli trader recently became the victim of a diamond swapping case, it was the Sherlock Holmes scanner that spotted the synthetics, Yehuda said. Following the incident, which involved 3- to 5-carat diamonds, the Israel Diamond Exchange stripped two people of their bourse membership and reported the theft to the police, as reported by Rapaport News on August 5.
Diamond Swapping Threat: Waiting for trouble.
“They buy the machine after it’s happened to them,” Yehuda said. “Every week, people come, and we check