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Credit card fraud - Chennai
Case – 2: Credit card fraud
State: Tamil Nadu
City: Chennai
Sections of Law: Section of Law: 66 of Information Technology Act 2000 & 120(B), 420, 467, 468, 471 IPC.
Background
The assistant manager (the complainant) with the fraud control unit of a large business process outsourcing (BPO) organization filed a complaint alleging that two of its employees had conspired with a credit card holder to manipulate the credit limit and as a result cheated the company of INR 0.72 million.
The BPO facility had about 350 employees. Their primary function was to issue the bank’s credit cards as well as attend to customer and merchant queries. Each employee was assigned to a specific task and was only allowed to access the computer system for that specific task. The employees were not allowed to make any changes in the credit-card holder’s account unless they received specific approvals.
Each of the employees was given a unique individual password. In case they entered an incorrect password three consecutive times then their password would get blocked and they would be issued a temporary password.
The company suspected that its employees conspired with the son (holding an add-on card) of one of the credit card holders. The modus operandi suspected by the client is as follows:
The BPO employee deliberately keyed in the wrong password three consecutive times (so that his password would get blocked) and obtained a temporary password to access the computer system. He manually reversed the transactions of the card so that it appeared that payment for the transaction has taken place. The suspect also changed the credit card holder’s address so that the statement of account would never be delivered to the primary card holder.
Investigation
The investigating team visited the premises of the BPO and conducted detailed examination of various persons to understand the computer system used. They learnt that in certain situations the system allowed the user to increase the financial limits placed on a credit card. The system also allowed the user to change the customer’s address, blocking and unblocking of the address, authorizations for cash transactions etc.
The team analysed the attendance register which showed that the accused was present at all the times when the fraudulent entries had been entered in the system. They also analysed the system logs that showed that the accuser’s ID had been used to make the changes in the system.
The team also visited the merchant establishments from where some of the transactions had taken place. The owners of these establishments identified the holder of the add-on card.
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