There were plenty of caves, some of which connected to the old part of Scarborough via underground tunnels. It is said that some lead up to Scarborough Castle perched high above the inn.
If the law was around, then they would have had plenty of time to reload goods back onto ships. Smuggling was so profitable that they could afford to lose some of their goods.
One such tunnel linked to "The Three Mariners Inn". This fits every requirement of a smugglers house. The Three Mariners Inn has numerous secret cupboards. There are also false floors and secret hidden rooms. Half way up the staircase in the Three Mariners is a very small ancient light (window) which was used as a look out down Quay Street.
These secret hiding places really were secret. Often they were forgotten. Years later a secret room was discovered in the "Three Mariners" which contained a keg of gunpowder.
On one other occasion, a child broke some wall plaster in the Three Mariners Inn and managed to find his way into a small cupboard. It was only through the child's cries that they found him and the hidden cupboard he was inside!