Common Gold Frauds in India and How Hallmarking Prevents Them

Gold fraud has a long history in India's jewellery market. The BIS hallmarking system and HUID framework were designed specifically to address these issues at scale.

Common Types of Gold Fraud

Under-karating is the most widespread form of gold fraud. A jeweller claims an article is 22K (916 fineness) when it actually contains less gold — perhaps 18K or lower. Before mandatory hallmarking, this was difficult for consumers to detect.

Gold plating on base metals involves coating cheap metals like brass or copper with a thin layer of gold and selling them as solid gold articles. This targets uninformed buyers, especially for coins and small items.

Counterfeit bars and coins are stamped with fake certifications and refinery marks. These have become more sophisticated over time, making visual inspection insufficient.

Cadmium-based soldering (KDM) was historically used in gold jewellery and added impure metal to the article without disclosure. BIS regulations now govern soldering materials.

How Hallmarking Prevents Fraud

Independent scientific testing — Every hallmarked article has been tested by a BIS-authorized centre using XRF spectrometry. The testing is independent of the seller, eliminating conflicts of interest.

HUID traceability — The six-digit HUID creates a digital record linking every article to the specific hallmarking centre that tested it, the tested purity, and the date. This accountability chain makes fraud traceable.

Digital verification — Anyone can verify a HUID through the BIS CARE App, which is free to download. Enter or scan the code to see the article's certified details instantly.

Registered jewellers — Only BIS-certified jewellers can sell hallmarked gold. The registration creates a layer of accountability.

What to Do if You Suspect Fraud

1. Verify the HUID using the BIS CARE App
2. Check the jeweller's BIS registration on the BIS website
3. Submit the article for testing at a BIS-authorized hallmarking centre
4. File a complaint through the BIS CARE App with photographic evidence
5. Approach consumer forums for legal recourse

Prevention Is Better Than Cure

The simplest way to avoid gold fraud is to buy only BIS-hallmarked gold jewellery from registered jewellers and verify the HUID before completing the purchase. This takes less than a minute and provides verified assurance of purity.