HSBC faced a data theft issue where an employee, Nadeem Kashmiri, accessed customer information from UK accounts without permission and passed it to a co-conspirator to conduct fraudulent transactions. Over £2,33,000 was estimated to be lost. Kashmiri received Rs. 4000 per account data and made Rs. 80,000 per data passed on. The issue arose because Kashmiri joined HSBC using false records and references during inadequate employee verification, as the BPO firm was feverishly recruiting and did not take enough time for verification. HSBC proposed that employee verification and risk mitigation be handled by the Information Security Department instead of the HR department to prevent similar issues.

1. CASE STUDY ON:
CREDIT CARD DATA
FRAUD
(HSBC HDPI)
PRESENTED BY:
JIBY VARGHESE
S1 MBA

2. ABOUT THE
COMPANY
(A BRIEF HISTORY)

3. HSBC HDPI
THE HONGKONG AND SHANGHAI BANK
CORPORATION ELECTRONIC DATA PROCESSING
(INDIA) PVT. LTD
o TYPE: Subsidiary of HSBC Holdings plc.
o INDUSTRY: Provides Support Services
o FOUNDED: 2000
o HEADQUARTER: HYDRABAD
o KEY PEOPLE: MR. RAVIN NARAIN

4. PROBLEM
IDENTIFIED

5. HSBC DATA THEFT ACCUSED
NABBED IN BANGLORE
o TOTAL LOSS ESTIMATED AT £2,33,000 (Rs. 1.75 CRORE).
o NADEEM KASHMIRI (23) FOUND GUILTY.
o CHARGED WITH ACCESSING INFORMATION OF UK
CUSTOMERS AND
o PASSING THEM TO CO-FRAUDSTER ERSHAD FOR
CONDUCTING FRADULENT TRANSACTIONS.
o GOT NOTICED WHEN CUSTOMERS START
COMPLAINING ABOUT UNKNOWN TRANSACTIONS
FROM THEIR ACCOUNTS.

6. Cont…
o KASHMIRI GOT RS. 4000 PER ACCOUNT DATA
AND GOT OVERALL RS. 80,000 FOR EACH DATA
HE PASSED.

7. WHAT LED TO THE
PROBLEM
o Nadeem joined HDPI with false records and
misrepresentation.
o Provided false references for conducting
references checks
o BPO firms feverishly recruiting and
o No enough time for inadequate employee
verification.

9. Employ verification and risk mitigation to be placed
under the Information Security Department and not
under HR department.