Tag Archives: Financial services

Flashback Special 26 @ KPMG: Job aspirants across India taken for a ride



The Date-March 19,1987, The Location- Tribhovandas Bhimji Zaveri/Opera House/Mumba, The Perfect Crime

Many elaborate Job recruitment scams have taken place since then. The simplest modus operandi is to insert Paper advertisements informing candidates of vacancies in reputed manufacturing/software companies.

The applicants were advised to deposit an amount, often referred to as processing fees, in bank accounts.

As the candidate’s faith in such schemes started to reduce, the conmen refined  their act further.

This time it was the lure of jobs in KPMG. KPMG in India is one of the leading providers of risk, financial services and business advisory, internal audit, corporate governance, and tax and regulatory services.  There is an aura surrounding KPMG positions.

The interview Date- October 7, 2013

The interview location – Eight floors below KPMG’s office at the World Trade Centre building in Bangalore,

The modus operandi – A mix of hacking and bogus job interviews.

A bunch of impostors posing as KPMG managers interviewed, hired and issued fake offer letters to half-a-dozen job aspirants. They even asked the candidates to report to the 12th floor, the real KPMG office. By the time the candidates and the company could figure they had been duped, the impostors had left.

The unsuspecting aspirants were earlier beguiled into transferring money into a bank account.

“They had the nerve to book a business centre in the same building as our office. The proportion of this fraud is ridiculous,” says Shalini Pillay, head of HR, KPMG. She hastens to add that KPMG’s recruitment process is very robust. “We have codes for every applicant and even our recruiters are aware of this.”

To minimize suspicion in the candidate’s minds, calls to these candidates were made from a number that was identical to KPMG’s board line, but the company says none of their staff are involved. It has reported the incident to the cyber crime cell in Bangalore. Officials feel it could be a case of hacking as well. This is the second such con on KPMG. Last month, another bunch was similarly duped in Hyderabad. In all, about 30 candidates have walked into KPMG offices with fake offer letters.


RBI penalises Prime Co-operative Bank Ltd., Surat (Gujarat)


The Reserve Bank of India has imposed a monetary penalty of Rs5.00 lakh  (Rupees  Five Lakh only) on Prime Co-operative Bank Ltd., Surat (Gujarat).

The penalty is for violation of various RBI instructions relating to issuance of Demand Draft/Pay Order by the bank during the period from April 1, 2010 to March 31, 2013.

Way back in 1991, vide Notification No:DBOD.BP.BC.114/C.469 (81)-91 dated 19th April, 1991, Reserve Bank of India, had notified Banks, to issue travellers cheques, demand drafts, mail transfers, telegraphic transfers for Rs. 50,000/- and above by debit to customers accounts or against cheques only and not against cash.

This press release should enable the Banks to further strengthen their internal processes to ensure that there is no slippage of RBI instructions.

Your Bank knows where you are and what you will do next


In this era of ATM Cards, Credit Cards, Mobile banking and Internet Banking, your bank can know where you are.

However, there were few Banks which were integrating the data, and analyzing it, for greater consumer preference insights.

In India, Indusind Bank has taken the lead to micro track its customer’s location and offer customized recommendations.

The Banks aim is to offer personalized, location-based recommendations, that too in real time.

To offer these services, Indusind Bank is relying on a new technology developed by IBM Research-India.

The customer has to opt for this service. On opting for this service, the IBM tool starts cross-referencing the user’s locations with the user’s activities and provides useful insights. Over a period of time, as the user’s history is built-up, the emails and mobile alerts become more targeted.

IBM Research – India has developed a new technology that connects people with contextual information.

The technology is embedded within the bank’s various channels – Internet, ATM, SMS, phone and branch – as part of a wider overhaul of its front office aimed at improving personalisation. Hence, the tool will start its work, the moment the customers touch any bank channel.

What interests me is that this tool can be part of the fraud-monitoring activity too. Any out of the way transactions can instantly be flagged for immediate attention of the monitoring team.

This new offering by Indusind Bank is to better anticipate, respond to and capitalize on future events quickly and ahead of its competition



Rs100 crores potential revenue loss by Indian insurers


Insurance companies are joining hands to fight the rising cases of insurance fraud and insurance mis-selling.


It is difficult to pass judgment on the insurance companies or the fraudsters. Like every industry, the insurance agents have targets to meet. Hence, few insurance agents might resort to mis-selling of insurance policies.


However, in a bid to safe guard the reputation of the Indian insurance industry, Insurance companies are coming together to minimize fraud and also mis-selling.


Mis-selling can simply said to be selling an Insurance Policy which is not the right product to the customer.  Mis-selling happens in all industries, but the insurance industry is witnessing an increasingly high mis-selling issues. In the long-run, such mis-selling is not good for Indian Insurance companies.


The popularity of life insurance for tax benefits as well as protection makes it an easy and effective trap. Most fraudsters are either former employees of insurance companies or insurance sub-brokers. These people have access to the database of clients of insurance companies and use it to lure victims.


Insurance accounts for over 12 per cent of the financial assets of Indian households, according to the Central Statistics Office. Over 2,000 cases of fraudulent sale of insurance products have been registered during the last one year, while the industry is estimated to have lost Rs 100 crore potential revenue during the period.


The formula to dupe is simple: You get a call promising a free gold coin or interest-free loan on purchasing an insurance policy.  Once you ‘bite’, a person comes around to collect the so-called ‘insurance premium’ for the new policy or to surrender an existing one for another. The fraudsters take the personal details and promise to fill the form themselves. Then, they simply disappear with the premium amount.


Read Ernst&Young report on Insurance Fraud in India.


Insurance firms believe that the fraudsters have a hit rate of 30 per cent, which is, for every 10 calls made by the fraudsters, at least three customers fall prey.




“We have received 500-odd complaints on this and we have seen a significant increase in the last six months,” said Rajesh Relan, Managing Director and country manager of PNB MetLife.




Reliance Life has registered over 200 FIRs across India to check the mis-selling menace. Seven people have been arrested and 13 detained by the police for interrogation.




HDFC Life has filed over 200 complaints in the last four months. In fact, fraudsters have gone to the extent of using insurance regulator IRDA’s name to make a sale.




VERIFICATION PROCESS: Independently, insurance companies have started a policy verification process, wherein they call the customer to confirm if he/she really understands all the terms of the policy.




“Customers have to be alert and not fall prey to any person or entity making fraudulent offers of lucrative loans or gains,” said Anup Rau, CEO, Reliance Life Insurance.


One way to reduce the insurance frauds is to collect the first premium electronically only. This is a tedious activity, but has the potential to save the Indian insurance industry from fraudulent folks out there.


In the first quarter of 2012-13, IRDA has noted 76,000+ complaints, and more than 50% pertain to ‘unfair business practices’.