This is one of the oldest and most expensive tourist scams in India, and it targets your greed rather than your fear. The pitch is a once in a lifetime chance to make easy money reselling gems or carpets back home. The profit does not exist, and the goods are near worthless.
How this scam works
A charming new friend, or a shop owner after tea and conversation, brings up a business opportunity.
They explain you can carry tax free gems or carpets home and resell them abroad at a big markup, because you avoid duties they cannot.
They arrange a buyer overseas, and ask you to pay for the goods now, often thousands of dollars, sometimes on your card.
The overseas buyer never materializes, the goods are cheap glass or ordinary rugs, and the money is gone.
What it sounds like
Dealer: You just carry these stones home, my partner buys them for triple. Easy profit, we share it. I only need the deposit today.
You: Walk away. Guaranteed resale profit on gems or carpets is always a scam.
Red flags
- Any stranger offering a guaranteed profit on reselling goods.
- Pressure to pay now for items you will resell later.
- A conveniently waiting overseas buyer you never meet.
What to do
- Never buy goods to resell for a stranger, and never believe a guaranteed profit.
- If you want to buy a gem or carpet for yourself, use a reputable, established shop and do not overpay.
- If you were charged, dispute it with your card issuer and report it to the tourist police.
How to report this scam in India
For cyber or card fraud, report at cybercrime.gov.in or call 1930. See the travel scams guide for more.
Watch it happen
Frequently asked questions
Is the India gem resale scheme real?
The scheme is real but the profit is not. It is a long running scam. You pay up front for near worthless stones and the promised overseas buyer does not exist.
Can I safely buy gems in India?
You can buy for yourself from a reputable, established jeweler, but never as an investment to resell, and never on the word of a new friend or a shop you were steered to.
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