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Identity theft of western clients by BPO employees in India continue - is NASSCOM really qualified to outline and enforce plan to protect privacy?
While NASCOM, India's software industry lobby, has come out with a plan to protect the sensitive information of clients especially those living in US and Europe, many are questioning their authority, capability, expertise and possible jurisdiction of enforcement. The whole issue stirred up when some call center employees stole identity and fraudulently embezzled money of Citibank clients in USA.
Nasscom has outlined a plan for stricter privacy protection laws it hopes will be in place by year-end. The strategy calls for more self-regulation within companies, greater education and awareness of security concerns, and higher standards for encrypting sensitive information.
Compliance with international standards is also part of the agenda. "We want to drive change and bring best practice to India and to the market as a whole," said S Ramadorai, who took over as rotating chairman of Nasscom last month.
India's IT companies stepped up efforts to improve security after three employees at Mphasis, a Bangalore-based outsourcing company, were arrested in April over allegations they stole $350,000 from Citibank account holders in New York. "Violations happen in every country," said Mr Ramadorai. The arrests "highlight that the system is working".
There have also been a number of high-profile security breaches in the US. Lexis-Nexis, the database group, and UK-based bank HSBC each revealed in April that identity thieves might have stolen personal data from hundreds of thousands of customers. Although India already has an information technology privacy act, there is no industry-wide system for checking employee backgrounds.
About 350,000 Indians work in business process outsourcing, handling credit card and bank account information, as well as managing insurance and medical records and other sensitive data.
There are many reports of identity thefts of Western clients in India.
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