Insider information leakage constitutes an important part of employee frauds in the country, according to a consulting expert.
"Insider information leakage which is mainly done through mail forms an important part of employee frauds in the country", said Babu Jayendran, Adivsor, Consulting, Saaransh Software Pvt Ltd.
"Mails sent by employees need to be monitored by a lot of companies. That is probably the reason why many of the firms do not provide web access to their employees", he told reporters during a one-day conference on 'employee frauds' in Bangalore on Friday.
"To detect such kind of a fraud, you need a software that can read confidential information inside the mail. Many a time, crucial information like audit reports and board minutes are sent out through e-mails," Jayendran pointed out.
Giving details about the "sniffer software" devised by his company to detect such leakage, he claimed the software could furnish not only the name of the violator but also the exact time of violation.
"The software also does link analysis and pattern recognition, one of the core things in identifying such frauds especially in banks, he said.
The software which employs digital forensics on mail data not only checks the leakage but also prevents it. "However, it depends on the client, whether he wants one (only checking) or both", Jayendran said.
Although the software was mainly for outgoing mails, it can be configured for incoming mails also, Jayendran said.
Yash Manoli, Vice-President Human Resources EXL services, a recruiting firm, said the kind of frauds encountered by the recruiting industry were mainly those pertaining to forgery (giving forged experience certificates), faking (fake education certificates, false claims of workplace) and misrepresentation or incomplete information.
"One of the major challenges faced is employees changing their mobile numbers faster than their shirts with increasing number of subscribers to cellular services in India", he said.
A recruiting firm like his therefore not only verifies the documents while submission but also during the induction stage by interacting closely with Vice-Chancellors and Deans of various universities.
"We also take the photgraph of the person during the interview to match it with the person taking the job to prevent identity frauds".
Ten per cent sample of induction batch is covered under random check and verification is done through third party agency, followed by "reverification of red reports".
To efficiently detect the frauds facing the recruiting industry what is needed is closer ties between industry and academia, regular interaction with academic heads and closer network of HR departments between organisations.