Flipkart-owned fashion website Myntra has become the latest victim of a sophisticated refund scam that has cost the company millions of rupees. Fraudsters exploited the company’s customer-friendly refund policies to defraud it. The multi-crore fraud came to light during the audit.
The modus operandi involved placing bulk orders for high-value items like branded shoes, apparel, and accessories. Once the orders were delivered, the fraudsters would file false complaints, claiming issues like item shortages, incorrect items, or non-delivery. Myntra has an app option for customers to file complaints and claim refunds. The options included shortage, colour mismatch, or not the same order. The firm would initiate the refund process after receiving complaints.
The losses incurred by Myntra are substantial, with estimates suggesting that the company may have lost over Rs 50 crore nationwide. In Bengaluru alone, approximately 5,529 fraudulent orders were identified, leading to significant financial damage.
Jaipur to Bengaluru: How the scammers operated
Explaining the fraud, a police officer said that if a person placed an order for 10 pairs of branded shoes after receiving the parcel, he/she would claim that the parcel had only five pairs. A refund would be claimed for the five pairs of shoes they paid for while placing the order online or paid by COD.
The officer told TOI that a gang in Jaipur, Rajasthan, is involved in the fraud. Almost all the fraudulent orders were placed from Jaipur. The fraudsters gave addresses in Bengaluru and other metros for delivery. Orders were delivered to commercial establishments such as tea stalls, tailor shops, or provision or stationery stores.
In a similar case recently, cybercrime had arrested three miscreants from Surat, Gujarat, for cheating e-commerce company Meesho in the guise of suppliers and customers. They reportedly cheated Meesho to Rs 5.5 crore by placing fraudulent orders. The case was registered under the Information Technology Act and IPC sections 419 (cheating by personation ) and 420 (cheating and dishonestly inducing delivery of property) and an investigation is under progress.
