Myntra duped of ₹1.1 crore in ‘refund’ scam by Jaipur-based gang: Here’s how they pulled it off
- Myntra was defrauded of ₹1.1 crore by a Jaipur-based gang who abused the ‘refund’ option available on the e-commerce app
Bengaluru: Most e-commerce fashion platforms offer a refund option to provide customers with the convenience of changing a product for colour, fit, or a range of issues. However, for Myntra, an Indian e-commerce fashion platform, the story turned out to be tragic after a gang from Jaipur cheated the company of ₹1.1 crore.
The fraud happened from March to June this year and was discovered during Myntra's audit, reported the Times of India.
How was Myntra cheated
According to the police officials investigating the matter, fraudsters would place bulk orders for branded shoes, apparel and other merchandise such as handbags, cosmetics, watches and jewellery on Myntra's app or portal. They would then choose ‘online’ or ‘cash-on-delivery (COD)’ as the mode of payment.
Upon receiving the order, the gang would then raise complaints of product shortage. Some of them would also complain of colour mismatch, and hit the ‘refund’ option. For instance, if the order were placed for ten pairs of branded shoes, after receiving the parcel, the person would claim that the parcel had only five pairs, the TOI report said quoting police officials.
Fraud orders delivered in Bengaluru
Police officers probing the matter stated that most of the orders were from Bengaluru. Myntra Designs enforcement officer Sardar MS told police that the loss occurred from about 5,529 fraudulent orders delivered to different addresses across Bengaluru.
According to TOI's report, police suspect that a gang from Rajasthan was involved in the fraud as almost all the orders were placed from Jaipur. The fraudsters gave addresses in Bengaluru and other metros for delivery. A few orders were delivered to commercial establishments such as tea stalls, tailor shops, or provision or stationery stores.
Reportedly, Myntra wanted to lodge a complaint for the loss incurred from fraud orders delivered across India, but Bengaluru police asked the e-commerce platform to file a complaint only with regard to losses they suffered in city deliveries.
Key Takeaways
- E-commerce platforms must enhance their fraud detection mechanisms to prevent similar scams.
- Understanding consumer behavior can help businesses identify patterns that may indicate fraudulent activity.
- The importance of thorough audits and checks in e-commerce operations to safeguard against financial losses.
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Business NewsNewsIndiaMyntra duped of ₹1.1 crore in ‘refund’ scam by Jaipur-based gang: Here’s how they pulled it off
First Published:10 Dec 2024, 10:50 AM IST
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