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This is a great story...although the best part TOTALY unrelated is the line where they say the security cameras at the airport weren't working. In any event her watch could have been grabed by TSA or a passenger. One thing I make sure I do before going through is to put my wallet, watch, and phone in my brief case so sticky fingers of others don't grab it. I do find it odd that according to the article the TSA insisted she put it through.
http://consumerist.com/2010/05/tsa-sued-rolex.html
Same thing with me. I make sure everything i need to take off is in my bag before i get to security. Once I check in I put my watch and wallet away this way when I get to security no one can see me putting the stuff into a tray.
No cameras means there's no proof she actually had the Rolex. Also, if you're going to walk around with a $25,000 watch, get it insured.
I put everything in my carry on. It just makes sense. The watch had to come off because it was setting off the WTMD. You would be surprised how many airport have little if any cameras and how many passengers have sticky fingers. Yes there are thefts by TSA Officer but they are taken seriously and they are terminated and prosecuted.