Outsourcing Swindle - It is breaking new frontiers in CRIME

Outsourcing swindle worth Millions

INDIA NEW DELHI: Information Technology is providing not just a cutting edge to the economy, it is breaking new frontiers in crime.
Today, we look at a simple — but devastating fraud — that unscrupulous fly-by-night operators are perpetrating on unsuspecting companies hoping to tap into the infotech boom. The method is simple. The fraudsters claim to have grabbed substantial BPO work from an Indian or overseas client — who does not exist in reality.
Then they dupe Indian companies who are "sub-contracted" the work. Databases are provided a sumptuous advance from the duped companies. Once the work is completed, it is rejected on flimsy grounds and crooks refuse to return sureties or simply vanish. In one such case, the economic offences wing (EOW) received a complaint from a firm called M/s Shivam Institute of Medical Transcription alleging it had been cheated by a Bangalore-based company called M/s Maithry Infotech.
It is understood that M/s Maithry Infotech told smaller companies that it had a form-filling contract from Life Insurance Corporation (LIC), India, and was on the lookout for companies who could process the data. "The complainant alleged that Maithry Infotech signed agreements with outsourced parties from across the country and collected procurement fees from them in return. Maithry Infotech is believed to have raised invoices to the tune of Rs 3,03,70,180, after which the company reportedly went underground," DCP EOW, Prabhakar, said.
In two other cases, the firms — M/s V Joy Technologies and M/s SiS Technologies — apparently said they were agents of some off-shore clients and signed MoUs with small companies, who were asked to pay security deposits. And each time the small firms submitted the completed work, it was rejected on some ground or the other. The estimated amount of fraud is over Rs 2 crore in case of M/s SiS Technologies and over Rs 20 lakh in other cases reported with the Delhi Police so far.

MEGHA SURITIMES NEWS NETWORK[ TUESDAY, MAY 31, 2005 02:10:37 AM ]