Grading

GIA invalidates 1,042 reports due to hacking

GradingFeb 07, 2016

GIA invalidates 1,042 reports due to hacking

The Gemological Institute of America has invalidated grading reports for 1,042 diamonds after hackers gained access to its database and altered the reports.

Carlsbad, Calif.--The Gemological Institute of America has invalidated and is recalling grading reports for 1,042 stones after hackers gained access to its database and altered the reports.


According to a notification circulated to the trade on Friday, most of the stones attached to the grading reports in question were submitted to the GIA’s lab in India in July and August. They were graded in full or in part at other GIA labs, including New York and its headquarters in Carlsbad.

At some point between the conclusion of the grading process and the printing of the reports, one or more now-former employees of Tata Consultancy Services (TCS) gained “unauthorized remote access” to GIA’s grading information database and altered the color and/clarity grades on the 1,042 reports, GIA said. TCS, an IT firm, is the contractor that supports GIA’s databases worldwide.

These individuals were acting “at the behest of other parties unrelated to GIA or TCS,” said GIA, which discovered the discrepancies via its internal controls and launched an investigation together with TCS.

Though the lab would not release any more specifics about these “other parties,” it noted in the news release circulated Friday that it has suspended the clients who submitted the 1,042 diamonds for grading from further submissions as the investigation continues.

When asked why the clients were suspended, GIA spokesperson Stephen Morisseau said that the lab can suspend clients when it “reasonably suspects” that there’s been some sort of violation of the terms of its client agreement. 

Though TCS could not be reached directly for comment late Friday, the GIA said in its statement that the IT company had been open and cooperative throughout the investigation, and Morisseau said the lab will continue its “very long and important” relationship with TCS.

“They’ve worked very closely with us to identify the scope of this unauthorized activity, which was a violation of their internal controls as well,” he said.

The hacking is the latest in a string of incidents made public by the GIA this year, a year in which dealers are struggling in the face of sluggish worldwide demand for diamonds and slim margins.

In May, the GIA recalled hundreds of diamonds and cut off four clients for allegedly submitting stones with an undisclosed--and still not yet fully understood--treatment that improves their color by as much as four grades.

In August, the GIA cut off another client

for submitting diamonds with false inscriptions. Also, late last year, the lab suspended its sealing service indefinitely after receiving a sealed diamond for verification that did not match the grading report number packaged with it.

A police investigation into this latest incident is ongoing in India. In the meantime, the GIA is not releasing the names of either the suspects or the clients whose accounts have been suspended.

An Excel file listing all the reports that were altered can be downloaded here on the GIA website. The GIA “strongly requests” that anyone in possession of any of these diamonds or grading reports return them to the GIA immediately for examination.

Editor’s note: The headline of this story has been updated to reflect the fact that the GIA is invalidating a total of 1,042 grading reports, not thousands as previously stated. 

 

 

Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

Rolex and Hallmark logos
Policies & IssuesMay 06, 2024
Rolex Files Objection to Hallmark’s New Trademark Application

The Swiss watchmaker said the company’s plans to use a new version of the Hallmark crown on jewelry would confuse consumers.

Anglo American executive Benny Oeyen
EditorsMay 06, 2024
Q&A: 8 Questions With Anglo American’s Benny Oeyen

The executive talked about the importance of self-purchasers and how fuel cell electric vehicles are going to fuel demand for platinum.

Opening of Malabar Gold & Diamonds store in Naperville Illinois
MajorsMay 06, 2024
Malabar Gold & Diamonds Opens 4th U.S. Showroom

The Indian jeweler’s new store in Naperville, Illinois marks its 350th location, part of its ongoing global expansion plans.

Header image w logo.jpg
Brought to you by
From Registration to Return: 10 Tips to Protect You Before, During and After a Tradeshow

Tradeshow risks are real. Get tips to protect yourself before, during and after and gain safety and security awareness for your business.

Ben Bridge Jeweler Logo
Events & AwardsMay 06, 2024
Ben Bridge Jeweler Accepting Applications for Lonia Tate Scholarship

It will award a graduating high school student with about $10,000 toward a GIA diploma and an internship with the Seattle-based jeweler.

Weekly QuizMay 02, 2024
This Week’s Quiz
Test your jewelry news knowledge by answering these seven questions.
Take the Quiz
Mug shots of murder suspects Michael McCormack and Charles Robinson Shay
CrimeMay 03, 2024
Second Suspect Arrested in Murder of Colorado Jeweler

Wheat Ridge, Colorado police took a 50-year-old man into custody Wednesday following a two-month search.

Five Platinum Pieces
CollectionsMay 03, 2024
A Sneak Peek Into PGI’s Couture Platinum Spotlight Program

PGI partnered with four new and seven returning designers for its annual platinum capsule collection.

national-jeweler-top-image-v1.jpg
Brought to you by
Rio’s Reimagined Podcast: For the Love of Jewelers

Meet Ben Claus—grand prize winner of For the Love of Jewelers 2023 Fall Design Challenge.

Kristie Nicolosi
MajorsMay 03, 2024
Kristie Nicolosi Joins WJA Board Again

Nicolosi, president and CEO of The Kingswood Company, previously sat on WJA’s board from 2011 to 2018.

Karina Brez Bit of LUV Bracelet
CollectionsMay 03, 2024
Piece of the Week: A “Bit of LUV” for the Derby

Karina Brez’s race-ready piece is a sophisticated nod to the horse-rider relationship.

Stock image of handcuffs and gavel
CrimeMay 02, 2024
4 Indicted in Burglary Ring Targeting Indian, South Asian Families

The men are allegedly responsible for stealing millions in jewelry and other valuables in 43 burglaries in 25 towns across Massachusetts.

Horizon Campaign Collage
CollectionsMay 02, 2024
Foundrae Launches ‘Horizon’ Collection

“Horizon” invites individuals to explore the limitless possibilities that lie ahead, said the brand.

Pandora jewelry
FinancialsMay 02, 2024
Pandora Raises Guidance After Strong Q1

The jeweler credits its recent “Be Love” campaign and ongoing brand revamp for its 17 percent jump in sales.

Glenn Lewis
IndependentsMay 02, 2024
Oklahoma Jeweler Glenn Lewis Dies at 68

The co-founder of Lewis Jewelers was also the longtime mayor of the city of Moore.

The back of the Baume & Mercier watch Elvis gave to Dodie Marshall
AuctionsMay 02, 2024
Vintage Baume & Mercier With Ties to Elvis Sells for $7K

Elvis Presley gifted this circa 1967 gold and diamond watch to Dodie Marshall, his co-star in “Easy Come, Easy Go.”

Harwell Godfrey
IndependentsMay 01, 2024
Harwell Godfrey Opens First Store

It is located in Marin County, California.

Woman holding a dress
SurveysMay 01, 2024
Consumer Confidence Falls in April

Concerns about rising prices, politics, and global conflicts continue to dampen consumer outlook.

Syna emerald earrings
TrendsMay 01, 2024
Amanda’s Style File: All Eyes on Emeralds

May’s birthstone is beloved for its rich green hue and its versatility.

Jacqui Larsson Looking at a Diamond
SourcingMay 01, 2024
Opsydia Names New Sales and Marketing Director

Jacqui Larsson joins Opsydia with nearly two decades of experience in the industry.

Stock image crime handcuffs
CrimeMay 01, 2024
Grand Jury to Hear Case Against Jeweler Charged in Fatal Shove Following IJO Show

Last month in Dallas, David Walton pushed another jeweler, David Ettinger, who later died.

Tiffany Blue Book 2024: Tiffany Céleste Wings Pendant
CollectionsApr 30, 2024
12 Otherworldly Pieces From Tiffany & Co.’s 2024 Blue Book

The “Tiffany Céleste” collection reimagines designer Jean Schlumberger’s interpretations of the universe.

Zales 100th Anniversary Marketing Campaign
MajorsApr 30, 2024
Zales Celebrates 100 Years With New Campaign

The brand also created a 100-carat lab-grown diamond necklace in honor of its centennial.

Tim Schlick
MajorsApr 30, 2024
Platinum Guild International Appoints New CEO

Tim Schlick has been promoted from his previous position as COO.

Canadian Jewellers Association logo
Events & AwardsApr 30, 2024
Canadian Jewellers Association Brings Back the Summit

It’s the second year for the event, slated to take place in October in Toronto.

Supplier Spotlight -GIA -Recorded-Webinar.png
Recorded WebinarsApr 29, 2024
Watch: Diamond Identification and Evaluation - How to Protect your Business

Supplier Spotlight Sponsored by GIA

De Beers polished in tweezers
SourcingApr 29, 2024
De Beers to Move Auction HQ from Singapore to Botswana

Sales will be paused while the relocation takes place over the next few months.

Simone I. Smith SIS x MISA Denim and Diamonds
CollectionsApr 29, 2024
Simone I. Smith Mixes Denim and Diamonds in New Collection

“SIS x MISA Denim and Diamonds” is a collaboration between the designer and celebrity stylist Misa Hylton.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy