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India Outsourcing Under Scanner After ATM Heist

Outsourcing of jobs by global financial institutions to Indian shores has come under the scanner, with the perpetrators of a US$45 million worldwide ATM heist apparently breaching the computer systems of a payment processing firm in India for their con job, the Times of India reported.

According to charges filed by the United States federal prosecutors in New York, eight persons have been indicted for participating in two worldwide cyber attacks culminating in a massive US$45 million being withdrawn fraudulently from ATMs across the world in a matter of few hours earlier this year.

The modus operandi for the heist included hacking into the computer systems of payment processing companies – one in the US and another in India – to compromise the account details of prepaid card account customers of two banks (one in the UAE and another in Muscat). This was followed by unlimited withdrawals from ATMs across the world.

This is the fourth major instance in less than a year when outsourcing of key jobs by global financial conglomerates to India has found a mention by global regulatory or enforcement agencies for the wrong reasons, including for ineffective controls against suspicious transactions, a global rate rigging scandal, money laundering risks and now a huge swindle operation.

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