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How A Massive India Call Center Swindled 15,000 Americans (nytimes.com)

Posted by EditorDavid on from the we-need-a-'Do-Not-Swindle'-list dept.

An FBI agent based in India says the country has now become a major hub for call-center fraud, blaming "a demographic bulge of computer-savvy, young, English-speaking job seekers; a vast call-center culture; super-efficient technology; and what can only be described as ingenuity." The Justice Depatment recently indicted one company for scamming "hundreds of millions of dollars" from over 15,000 victims, placing more than 1.8 million phone calls to Americans, and Slashdot reader retroworks brings an update: The New York Times has an interesting blow-by-blow story on two India tech center employees who informed on their call center fraud operation, which targeted Americans (especially recent immigrants) with fraudulent IRS calls and other scams. [May be paywalled; free version here.] The building was surrounded by police, phone lines cut. Eventually 630 of the employees were released, and charges were brought against 70 managers and executives of the call center.
The operation filled a seven-story high-rise, and the Times reports that after the raid, "fraudulent IRS calls to Americans dropped 95% percent, according to the Better Business Bureau." But they add that one former employee believes the scams will continue. Within weeks of the raid, he'd been offered a nearly identical job: calling Americans and claiming that their computer was infected with a virus.

7 of 104 comments (clear)

  1. I still don't know how to feel about this... by Anonymous Coward · · Score: 5, Funny

    Sometimes the tables are turned. This is hilarious and sad. I can't decide how to feel about it, honestly.

  2. FBI Jurisdiction by Dutchmaan · · Score: 5, Informative

    Perhaps I'm mistaken, but isn't the FBI restricted to US jurisdiction? I grew up with the understanding that they were basically a domestic police force on the national level.

    I'm assuming I am mistaken, please feel free to give me further understanding on how the FBI can be in India.

    1. Re:FBI Jurisdiction by radarskiy · · Score: 5, Informative

      The FBI is primarily an investigatory bureau (hence the "Bureau of Investigation" bit) and there are many parts of investigation that do not require any extraordinary police powers. In addition, when a a crime crosses national borders they may be called to meet with those who do posses police authority rather than shout responses across the border.

    2. Re:FBI Jurisdiction by Yaztromo · · Score: 5, Informative

      Perhaps I'm mistaken, but isn't the FBI restricted to US jurisdiction? I grew up with the understanding that they were basically a domestic police force on the national level.

      I'm assuming I am mistaken, please feel free to give me further understanding on how the FBI can be in India.

      From the article:

      according to Indian and American investigators, who said that the raid in Thane was carried out entirely by the local police, without assistance from American officials.

      The FBI can still typically do investigation in other countries: collect intel, interview people, etc. They can then provide information tot he local authorities to handle the actual police work.

      Yaz

    3. Re:FBI Jurisdiction by Fencepost · · Score: 5, Interesting

      The FBI can't arrest, but they can work with enforcement agencies that do have jurisdiction (local, (Indian) state, (Indian) national) and provide resources and information.

      The story itself talks about one of the senior local officials who won't talk much about the investigation, but "he will describe the raid, in loving, cinematic detail: How at 10 p.m., after the last of the call center staff had arrived for the night shift, 200 police officers streamed up the main staircase, blocking every exit and detaining all 700 people who worked inside." That's not 200 FBI agents, that's 200 local officers.

      I haven't read the entire story yet, but part of the reason that the whistleblowers contacted the FTC (and through them the FBI) may be corruption - if they went through local channels and picked the wrong person, that person might have simply gone back to the leaders of this with their hand out and the information on the whistleblowers. The FBI may not have jurisdiction, but they also don't have a reputation for accepting bribes.

      --
      fencepost
      just a little off
  3. How refreshing by ISoldat53 · · Score: 5, Insightful

    "charges were brought against 70 managers and executives of the call center. " How refreshing that the suits got charged. Maybe the FBI can learn how to do that in the US.

  4. I switched banks because they used an india CC by EmperorOfCanada · · Score: 5, Interesting

    My bank outsourced to an indian call center and the next time I called them for something I asked where I was calling. The guy evaded my questions so I dropped my account of 20+ years to a bank that uses local people. I have to wait a tiny bit longer for them to answer but they actually answer my questions. So long CIBC.