750 People Involved In A Call Center Scam...how is it possible ?

The link to the article is below and even though it is a few weeks ago I still wanted to offer my thoughts regarding the issue.

Americans have been on the receiving end of fraudulent phone solicitations for a long time, as such the story below might not be that unusual. What is unusual to me, and really strikes me as rather amazing is the scope of the operation which was revealed when Indian police busted the network.

India is obviously well know for its outsourcing services within the call center industry. It is not the biggest supplier of outsourced telemarketing services anymore, that rank has been taken over by the Philippines now, but it still is a place where millions work on the phone talking to US customers. 

750 Indian nationals were arrested in what must surely be  the biggest call center fraud ever perpetuated. The fraud was apparently conducted by using the IRS as the scapegoat and people were coaxed in resolving their outstanding IRS issues through a settlement.

The settlement would typically take place via the purchase of voucher or gift cards which the fraudsters then used to purchase items with the goal to resell those in the open marketplace.

The average daily amount generated this way was apparently 150,000 USD. Considering that the fraud has been going on for quite a while it seems clear that the actual damage might be more than a hundred million US-$.

What is more striking than the actual amount though is the level of sophistication one needs to employ in order to have 750 people involved in an operation like this day in day out. A structure like this needs management, training and supervision to stay on message.

It seems therefor very likely that this level of sophistication is not a just a one time deal but rather the result of a consistent and organized effort. With that in mind I would vouch to say that what the Indian police closed down was simple a part of a bigger network which specializes in that type of fraud.

The "Tip Of The Iceberg" is what comes to mind here.

Indian Police Arrests 750 In Phone Fraud