Myntra, the Flipkart-owned fashion e-commerce giant, recently fell victim to an elaborate refund scam, leading to financial losses exceeding ₹1 crore. The scam targeted the platform’s customer-centric policies, allowing fraudsters to exploit the refund process.
Uncovering the Scam
The scheme came to light during a routine audit that flagged suspicious activity. Scammers placed bulk orders for high-value items such as branded shoes, clothing, and accessories. Upon receiving the orders, they lodged false complaints, claiming issues like missing items, incorrect products, or non-delivery.
Myntra’s automated refund process, which prioritizes swift resolution for customer grievances, initiated refunds based on these complaints without extensive verification, as reported by the Times of India.
Scale of the Fraud
Initial investigations reveal Myntra may have suffered a nationwide loss exceeding ₹50 crore. Bengaluru alone accounted for over 5,500 fraudulent orders, causing significant financial damage.
How the Scam Worked
According to police, the fraudsters followed a consistent pattern:
- Bulk orders were placed for premium items like branded shoes.
- After delivery, they falsely claimed partial orders were missing.
- Complaints prompted refunds for the “undelivered” items.
Many shipments were sent to commercial locations, such as tea stalls or small retail shops, making it challenging for Myntra to detect fraudulent activities.
Investigation Leads to Jaipur
Authorities traced the operations to a gang based in Jaipur, Rajasthan. Most orders originated from Jaipur and were delivered to metropolitan areas, including Bengaluru. This geographic spread complicated detection and further investigations.
E-Commerce Fraud Beyond Myntra
This incident is not isolated. In a similar case, Surat police arrested three individuals for defrauding Meesho of ₹5.5 crore through refund scams.
Ongoing Investigations
While Myntra initially intended to file a nationwide complaint, Bengaluru police advised focusing on local cases. Efforts are underway to dismantle the broader network behind these fraudulent activities.
