An Indian fashion E-commerce website Myntra has become the victim of refund scams. The company lost millions of rupees because of this refund scam fraud. The fraudsters have found a loophole in the company’s user-friendly refund policy to defraud Myntra. The fraud came to the limelight during the company’s audit where they found a massive loss of Rs 1.1 crore of revenue from March to June this year, reported the Times of India.
How The Fraudsters Scammed Myntra?
Fraudsters have exploited the company’s customer-friendly refund and return policy. The scammers used Myntra to place large quantities of expensive branded items like shoes, clothes, handbags, cosmetics, watches, and jewelry. They would choose either ‘online’ or ‘cash-on-delivery (COD)’ as their payment method while placing the orders. Once the items were delivered, the fraudsters would file false complaints like incorrect items, missing products, color mismatch, or non-delivery. In this way, they would ask for refunds from the company. Myntra initiates refund requests after receiving complaints.
Scammers Used Addresses Of Small Business
A group from Jaipur exploited Myntra’s return and refund policy. Firstly, Meesho, now Myntra, has become a part of a big scam. Police investigations found that the scammers are based in Jaipur. The police also noted that most of these fake orders were delivered to addresses within Bengaluru city. Approximately 5539 fraud orders were sent to diverse locations across the city. What made the scam even more confusing was that the scammers used addresses of small business places such as tea stalls, tailor shops, grocery stores, and so on, making it very hard to identify the fraud.
The investigation also revealed that most of these fake orders originated from Jaipur, and a gang from Rajasthan was responsible for the scam. The fraudsters exploited Myntra’s refund policies and used them against the company. Initially, Myntra had decided to report the losses from these fake deliveries across the country. However, the Bengaluru police suggested that they should lodge complaints about the fraud only when it came to delivery within the city and limited the scope of the issue.
A Similar Incident Happened With Meesho
Recently, a similar incident happened with Meesho. Cybercrime has arrested three criminals from Surat, Gujarat, for cheating the company. They reportedly cheated on Meesho and committed a fraud of 5.5 crore. The case is registered under the IT Act under IPC sections 419 cheating by personation and 420 cheating and dishonesty inducing delivery of property.
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