Tuesday, April 19, 2005

Forget Phishing - Bank Employees Will Rob You

Indian call center staff in $350,000 Citibank theft are likely to absolutely kill offshoring by financial institutions. When you trust your bank to hire employees who won't compromise your financial information, it appears that trust cannot be outsourced. Banks may be one of the first to lose customer trust and suffer a backlash against India call centers because customers were tricked by those bank representatives who belonged to a gang of goons who robbed them blind.

Of course, there is no reason to believe that US call center employees, often paid poorly and pushed relentlessly, will be any more honest or less likely to be lured into criminal activity through their jobs. They have access to customers who must trust them and reveal personal information to access their account information over the phone. They can easily trick customers into revealing PIN numbers and use that to steal from them, and as these Indian call center employees did, funnel their money into other accounts.

It will only take a few incidents like this to make banks stop using foreign call centers in an effort to save money, but when it happens at home, with local employees - we may see serious background checks required and higher pay for those employees to keep them honest. There truly is no free lunch for business. The outsourcing backlash has now hit home for banking.

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posted by RealitySEO at 10:39 AM


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