Security Awareness

Greetings Team Loyalty,

We are pleased to introduce a new section in our company newsletter dedicated to preventing scams and fraudulent activities within the pawn industry. Our goal is to create awareness, provide useful examples, and share preventive measures to ensure the safety of our clients and the integrity of our business. We will continue to expand this section of our newsletter, focusing on various scams, fake items, and individuals or gangs operating in areas around us. Your vigilance and awareness are crucial in protecting our clients and our business. Please print out this valuable tool and include it in everyone's call back binders for easy reference. Feel free to share any additional examples or preventive measures you come across with our team.

Scams to be Aware of:

1. Counterfeit Jewelry: Beware of sellers offering jewelry at significantly lower prices than the market average. Counterfeit jewelry may be made of low-quality materials and may not possess the claimed gemstones or precious metals.

2. Diamond Grading Scams: Some unethical sellers may misrepresent the quality of diamonds by inflating their grades or using unreliable grading certificates.Always purchase diamonds with reputable certifications, such as GIAorAGS.

3. Bait-and-Switch: This scam involves showing a desirable piece of jewelry to lure clients, only to switch it with a lower-quality or less valuable item during the sales process.Always inspect the jewelry closely before finalizing the purchase.

4. OverpricedAppraisals: Some jewelers may offer appraisals at inflated values to create a false sense of value and convince clients they are getting a great deal. Get multiple independent appraisals to ensure accuracy.

Preventive Measures:

1. Verify Sellers and Items: Thoroughly verify the legitimacy of any item brought in for pawn or sale. Check identification, conduct qualifying questions, and document all necessary information to ensure compliance with local laws and regulations.

2. Educate Clients: Inform our clients about the common scams in the pawn industry and how to identify and prevent them. Share our knowledge and expertise to empower them to make informed decisions.

3. Secure Online Platforms: Be cautious of online scams targeting both our business and potential clients. Encourage clients to engage only with reputable pawnshops that provide secure online platforms for transactions.

Examples of Recent Scams:

1. On June 19th, a person called claiming to be referred by Stan and requested reference numbers to be texted to a different phone number and email address. The email address used was not the real Stan's email. This is a common scamming technique, and it is essential to pay close attention to all details and verify the legitimacy of any request for personal information. Scammers are becoming increasingly smart, and it is crucial to be cautious about the information given over the phone, email, or in-person. Remember to always be vigilant and protect your valuable information. It is important to note that Stan, Wayne, and Javier will never use a third party to provide any type of information. If someone claims to be referred by them, it is best to verify their identity and communicate with them immediately. We are committed to ensuring the safety and security of our clients and will do everything in our power to address any issues that may arise. Please do not hesitate to get in touch with them immediately if you have any doubts or concerns.

2. Switching Jewelry Items: Be aware of clients who bring in a genuine jewelry item, only to switch it with a fake one during the evaluation process.Always retest and evaluate items once they have left our side of the counter.

3. 3. Suspicious "Amazon Package": Recently, a sealed package resembling an "Amazon package" addressed to Loyalty Pawn arrived with a letter claiming to be from a wholesale electronics buyer. This individual requested a trial run, directing them to scan a QR code that potentially leads to a phishing attempt.Always double-check envelopes and perform a Google search on shipping addresses to gather more information on potential scams.

Thank you for your commitment to the safety and well-being of our clients and team members. Together, we will stay ahead of scams and maintain the trust our clients have in our services. Stay safe, be careful, and remain vigilant!