June 28 (Bloomberg) — An employee of HSBC Holdings Plc’s Indian unit was arrested in Bangalore and accused of helping a group illegally withdraw 233,000 pounds ($424,747) from bank customers’ accounts, according to a police official. Nadeem Kashmiri, a 24-year-old employee of HSBC Electronic Data Processing (India) Private Ltd., was charged with hacking into computers and breaching confidentiality agreements and privacy laws, Sanjay V. Singh, deputy inspector general for economic offenses, said today by telephone from Bangalore.
Indian call-center companies last year said they would work with local and overseas authorities to protect customer data following a U.K. newspaper report on bank account details being sold for cash. India’s so-called business process outsourcing industry, which operates call centers and provides research and accounting services, employs more than 415,000 people and generated $6.3 billion in export revenue last fiscal year.
The HSBC Electronic Data Processing unit provides customer services and transaction processing for the bank’s global operations from offices in three Indian cities, including the nation’s technology hub of Bangalore, according to HSBC’s Web site. London-based HSBC is Europe’s biggest bank by market value. “Affected customers have been contacted and, as is customary practice by HSBC, genuine victims of fraud will not suffer financial loss,” George Cherian, an HSBC spokesman in India, said in an e-mailed statement. “HSBC takes its data protection responsibilities very seriously.”
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BANGALORE, JUNE 28: A gang of scamsters in the UK had paid the HSBC’s Bangalore call centre staff Nadeem Kashmiri for confidential account information of HSBC’s clients in the UK, Bangalore Corps of Detectives (CoD) officials have found.
HSBC Electronic Data Processing India Pvt Ltd employee Kashmiri, who fraudulently leaked client account details resulting in an embezzlement of an estimated 2,33,000 pounds, was being paid nearly Rs 4000 for each account, according to a top official at Cyber crime police department.