On one side, India is fighting to retain the outsourcing industry that has grown from humble beginnings into the 108 billion dollar industry that it is today. On the other side, India is emerging as the top destination for hackers as the environment is conducive to cyber data theft.
India Forensic Report
India Forensic is a reputed firm that conducts security and risk management, forensic account research and fraud examination. The Pune based company reported, “Data theft is one of the biggest risks posed before the companies in the banking sector. Emerging underground websites help the data thieves to immediately encash the stolen data. Some data can be sold to multiple interested buyers in these underground black markets.”
Further, the low cost of every resource imaginable, the same source of the boom of the outsourcing industry, is responsible for the increase in financial data theft according to the report.
India forensic in the report continues to say, “When it comes to information technology, India is full of low cost resources. When the anti-fraud mastermind is required to carry out the dedicated hacking activity or a spear-phishing activity, services of various experts are sought for. This includes technology experts like spammers, designers and non-technology experts like cashiers, droppers, money mules etc. These resources are easily available at very low cost.”
India forensic is also credited with working with CBI, India’s premier investigating agency on various high profile fraud investigations. The company is known to have played a part in the Satyam multi-crore fraud. Fraud masterminds thrive on financial data. India offers a lush playground for data theft.
Indian Financial Data Market and Data Theft
Of the billion dollar outsourcing industry financial data forms a major chunk of the pie. Nearly 40 percent of the services exported are for the financial sector across the globe. The services range from risk management, processing insurance claims, research and back office functions for major financial institutions.
The underground market where one can buy financial data utilizes digital currency. Investigation into the underground market throws light on how one can buy stolen credit card numbers, but not with mainstream currencies like US dollars or Euros. The report that lead to an understanding of the market was called, “Laundering in Cyber World – The Digital Currency Way.”
Technology programs are capable of stealing valuable information such as debit card numbers, credit card numbers, prepaid value card numbers and bank account credentials. These technology programs are weapons of destruction in the hands of hackers, phishers and malware perpetrators.
With the growth of the outsourcing industry, the dependent industry of hacking and financial data theft is set to grow exponentially. Pointing to the increasing connection is the 45 million dollar ATM theft in the Bank of Muscat in Oman and in the RAKBANK in UAE. Both the banks had sent some of their business operations to India.
Electra card services in Bangalore was responsible for processing travel cards that were prepaid for the RAKBANK (National Bank of Ras Al Khaimah PSC). Enstage Inc., in Bangalore was responsible for processing transactions for the Bank of Muscat in Oman.
Mayur Joshi, the founder member of India forensic advised ITeS based securities agencies and firms to beef up security, further upgrade infrastructure in order to immediately check any incidence of data theft.