Police in the northern Indian province of Haryana have raided the offices of an IT outsourcing company suspected of defrauding clients out of thousands of rupees.

The company, Ammexx Data Solutions, allegedly used fake letters of credit (L/Cs) to secure deposits from freelance workers and provide them with false comfort that they would be paid when they completed work for the company.

Outsourcing work

Ammexx's main business appeared to be outsourcing computer-based jobs to freelancers.

Typically, a freelancer might be asked to convert data lists from one format of software to another, ultimately for the use of a US-based or European company.

L/C guaranteed payment

Ammexx would supply the work to the freelancer who was promised payment in, for example, six months time.

The freelancer would be asked to pay the company a deposit and, in return, Ammexx would provide the freelancer with a L/C guaranteeing payment later.

Complaints

Some of Ammexx's clients now say the L/Cs provided by the company are fake.

Complaints have been made to the Economic Offences Wing of the local police. The owner and directors of the company have reportedly disappeared.

Police officials estimate the fraud may amount to more than the equivalent of US$100,000 in local currency.

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