JSA Warns Suppliers of Shipment Diversion Scam

(IDEX Online) - The Jewelers' Security Alliance (JSA) is warning retailers and suppliers of a scam in which callers impersonate employees or customers to have high-value jewelry shipped and then diverted to addresses controlled by criminals.

JSA said it had received numerous recent reports of the scheme, which relies on detailed research into targeted companies.

The callers often know employee names, shipping procedures, inventory held by the business and even stock-keeping unit numbers listed online.

Callers have asked a retailer or supplier to send a high-end item overnight to what appears to be a legitimate destination but later tries to have FedEx, UPS or another carrier redirect it elsewhere.

JSA, a nonprofit trade association, said another variation of the same scam targeted businesses with multiple locations.

A caller would impersonate a manager, salesperson or shipping employee at another branch and request that an expensive item be sent immediately.

If the package is sent to the requested branch, the criminal would subsequently contact the carrier and attempt to change the delivery address.

In a further version, a person posing as a jewelry store employee contacts a supplier and orders a high-value item for delivery to the store, with the ultimate goal again being to divert the shipment.

The association said the criminals use social engineering, gathering information from company websites, social media and phone calls before attempting the theft.

That information allows them to sound like genuine employees or customers when making the fraudulent request.

JSA advises businesses to verify the identity of callers independently, particularly when a request involves a high-value shipment or a change to normal shipping procedures.

Employees should also avoid providing information about personnel, inventory, shipping procedures or tracking numbers to unknown callers.