If You Started A Grading/Authentication service today...

[steve B]

Originally Posted by Aquarian Sports Cards

Dumb question. Coins is a much older market, and has been grading longer. Did they ever undergo a similar scandal/issue? Did they get through it? I guess it's harder to "trim" a coin, but I know there are lots of things done to improve their appearance.

Nothing I can recall that was quite like this. But as someone else mentioned, there have been all sorts of problems.

In stamps, which has had authentication for a LONG time, there has been a comparable situation. The Philatelic Foundation had a person who was the one entering the certificates into their computer. That person would ensure that stamps submitted by an alterer got good certificates, even if the expert committee had put in writing that it was bad. (Fake, altered, repaired, whatever. ) One of the guys doing the faking even had a license plate that was "stamp MD"

But they handled it right, Immediately reviewed all of a dealers submisions when the first one was discovered by an employee, tightened security and processes, bought back what stamps they could find (Fired the guy responsible, who was also arrested)
They built their reputation back up, and are one of the better authenticators, generally for US stamps.
Each country does the authenticating slightly differently.
Germany they used to stamp the expertizers name on the back.
They have had scandals too, one expert was essentially the only expert in one narrow field (Upper Silesia overprints) He was also the source of many fakes, all certified by..... him.
That one didn't have a happy ending...