Hexaware employees conduct ₹4.83 crore refund fraud — get fired

Hexaware Technologies Ltd has dismissed seven employees from its Business Process Services (BPO) division in Nagpur following the discovery of a ₹4.83 crore fraud involving unauthorised refund transactions. The IT services firm disclosed the incident in a regulatory filing dated 8 April, confirming that it had lodged a First Information Report (FIR) with the police on 5 April 2025.

The fraud came to light during a routine audit and was traced to refund processes carried out on behalf of an e-commerce client. According to the company, the employees manipulated the refund system to carry out unauthorised transactions. While the scale of the fraud was substantial, Hexaware clarified that the irregularities were limited to the client account and had no financial impact on the company itself.

“These actions have not had any financial impact on the company,” Hexaware stated in the filing. The company further emphasised that the incident was isolated and not indicative of broader systemic issues.

Importantly, the employees did not misappropriate funds directly from Hexaware. Instead, the fraudulent activity was linked to services provided for the client, exposing vulnerabilities in outsourced refund processing. The misconduct involved manipulation of systems that process customer refunds, raising concerns about the effectiveness of internal controls within third-party support functions.

“The actions of these employees were undertaken in the course of providing refund services for the e-commerce client,” the company noted.

Following the internal investigation and subsequent dismissals, Hexaware reassured stakeholders that its overall operations remain unaffected. The company also confirmed that it has taken appropriate corrective actions to prevent similar incidents in future.

The swift response highlights Hexaware’s commitment to addressing breaches in a sector where trust and client confidentiality are paramount. As global clients demand greater transparency and governance from outsourcing partners, the way such incidents are handled can have significant reputational implications—even when the financial impact is contained.

This case adds to the growing body of concern around fraud risks in outsourcing environments, particularly where customer-sensitive services are involved. However, Hexaware’s prompt action—from detection to investigation, termination of employees, and FIR filing—could serve as an example of robust internal compliance and risk management in practice.

Law enforcement authorities are now investigating the case further to determine the full extent of criminal liability. Hexaware, for its part, continues to cooperate fully with authorities while assuring clients and investors that reinforced safeguards are now in place to uphold data integrity and trust.