Flipkart-owned fashion e-commerce platform Myntra has fallen victim to a sophisticated refund scam, resulting in massive financial losses. Fraudsters exploited the company’s customer-friendly refund policies, filing false complaints to claim refunds for non-existent issues. The scam, which came to light during a routine audit, has cost Myntra over Rs 50 crore nationwide, with Bengaluru alone accounting for around 5,529 fraudulent orders.
The Modus Operandi
The scammers primarily targeted high-value items such as branded shoes, apparel, and accessories. After receiving their orders, they filed fake complaints alleging issues like missing items, incorrect products, or non-delivery. Myntra’s app allowed customers to raise such complaints easily, with options including “shortage,” “color mismatch,” or “wrong item received.” Upon receiving complaints, the company would initiate refunds.
For example, a fraudster might order 10 pairs of branded shoes, then claim that only five were delivered, successfully receiving a refund for the “missing” items. Many of these fraudulent orders were placed from Jaipur, Rajasthan, with delivery addresses listed in Bengaluru and other metropolitan areas. To evade detection, the orders were often sent to commercial establishments such as tea stalls, tailor shops, and stationery stores.
The Jaipur Connection
Police investigations revealed that a gang based in Jaipur orchestrated the fraud. By using addresses in major cities for deliveries, the scammers managed to spread their operations and avoid drawing immediate suspicion.
A Broader Trend in E-Commerce Scams
Myntra’s case is not an isolated incident. In a similar scheme, three individuals from Surat, Gujarat, were recently arrested for defrauding the e-commerce platform Meesho. Acting as both suppliers and customers, they manipulated the system to place fraudulent orders, causing losses of Rs 5.5 crore. The suspects were booked under the Information Technology Act and Indian Penal Code sections 419 (cheating by personation) and 420 (cheating and dishonestly inducing delivery of property).
Impact and Ongoing Investigations
The Myntra scam highlights vulnerabilities in the refund mechanisms of e-commerce platforms. Authorities are actively investigating the cases, with efforts focused on dismantling the networks behind these fraudulent activities. As online shopping continues to grow, companies are expected to tighten security measures to prevent such losses in the future.
