Jaipur Gang Scams Myntra Out of Rs.1.1 Crore in Elaborate Refund Scheme: Here’s how they carried out their plan
Jaipur Gang Scams Myntra Out of ₹1.1 Crore in Elaborate Refund Scheme: Here’s how they carried out their plan
Myntra, the fashion website owned by Flipkart, has fallen victim to a sophisticated refund scam that has resulted in losses amounting to millions of rupees. Scammers have taken advantage of the company’s customer-friendly refund policies to carry out their scheme. This large-scale fraud was uncovered during an audit.
The scam involved placing bulk orders for expensive items such as branded shoes, clothing, and accessories. After the items were delivered, the fraudsters would submit false complaints, alleging issues like missing items, wrong deliveries, or non-receipt of orders. Myntra’s app allows customers to raise complaints and request refunds, with options including item shortages, color mismatches, or incorrect orders. Once complaints were filed, the company would start the refund process.
Myntra’s financial losses from this fraud are significant, with estimates indicating that the company may have lost over Rs 50 crore across the country. In Bengaluru alone, around 5,529 fraudulent orders were detected, resulting in considerable financial harm.
Explaining the fraud, a police officer mentioned that if someone ordered 10 pairs of branded shoes, they would claim that only five pairs were received after the package arrived. They would then request a refund for the missing five pairs, which they had already paid for online or through cash on delivery (COD). The officer noted that a gang based in Jaipur, Rajasthan, is behind this scam, as nearly all the fraudulent orders originated from there. The scammers provided delivery addresses in Bengaluru and other major cities, and some of the orders were sent to commercial places like tea stalls, tailor shops, or grocery and stationery stores.
Reportedly, Myntra intended to file a complaint regarding the financial losses from fraudulent orders delivered throughout India. However, the Bengaluru police advised the e-commerce platform to limit their complaint to the losses specifically incurred from deliveries within the city.
