Indian Outsourcing exposes firms to fraud - BBC

The arrest last week of a man in western India in an alleged call-centre fraud case went unreported. This was despite the high-profile reporting on the case in April when 16 others were arrested.

This suited India's business process outsourcing (BPO) companies, especially Mphasis, whose four employees have been implicated in the case. They are yet to recover from the shock of the alleged fraud of nearly $400,000.

Amid calls for tightening BPO regulations and more effective cyber laws the country's call centres are busy taking adequate security measures. Another one or two such cases and the industry is doomed, they admit.

Police, who are still investigating the case, believe it was well thought through and very organised.

Investigating officer Sanjay Yadav says the latest arrest just highlights how well-planned and widespread the fraud was.