Myntra Refund Scam: How Fraudsters Dupe Myntra of INR 1.1 Crore by Exploiting Loophole in Refund Option
Myntra refund scam, initiated by fraudsters dupe Myntra of INR 1.1 crore by exploiting loopholes in refund options. Know how they used the refund policy.
Bengaluru, December 11: Flipkart-subsidiary Myntra was recently cheated by fraudsters who allegedly took over one crores rupees this year during March and June. The scammers attacked the e-commerce company by exploiting some loopholes related to the Myntra policy and looted the money. The firm reported a loss of INR 1.1 crore in Bengaluru and INR 50 crore nationwide as the scammers abused the complaints and refund options.
According to the reports, the crooks who ran the Myntra refund scam were traced back to Jaipur, Rajasthan. Most of them ordered expensive products online, such as branded shoes, watches, jewellery, handbags, and others, from the Myntra website or app. These individuals ordered the items in bulk and gave the address where the e-commerce company's logistic department delivered the products. Vipps Launches World’s 1st Apple Pay Alternative for iPhone Users in Norway
Myntra Scam: How Fraudsters Fooled Flipkart-Subsidiary by Asking Refund?
The reports suggested that the fraudsters used COD (Cash-On-Delivery) and online payment options for the orders. Once they received their parcels, they would start complaining that they received a lesser quantity than ordered or the company delivered a different product than they placed an order for. The crooks knew in advance that the system would consider their request, attend to their complaints, and give solutions. They raised objects that the product was fake or denied that it was delivered completely.
Myntra's refund option worked via an app for customers who could raise complaints if the product they received did not meet their expectations and claim a refund. The subsidiary of Flipkart offered the customers options such as a colour mismatch in the product, shortage (fewer numbers), or getting a product that was not the same as ordered. The refund process began once the firm started receiving the complaints.
Myntra intended to file a case in the country; however, the Bengaluru police advised keeping it in the city where the items were delivered. The police informed the company that a gang in Rajasthan was involved in this act. The scammers would order ten pairs of branded shoes, and once received, they would say they received only five pairs and lodge a refund complaint. They placed orders via mobile app or website. They also used the colour mismatch option to refund the clothes they ordered, saying they did not match.
Sardar MS, Myntra Design enforcement officer, said that the company lost an amount from nearly 5,529 fraudulent orders that were delivered to different addresses in Bengaluru. The company found out about the fraud during an audit and confirmed it after it noticed that the refund amount was sent to different bank accounts of crooks. CrowdStrike Partners With SonicWall, Launches Enterprise-Grade Cybersecurity Solution for Small and Medium-Sized Businesses.
Most fraudulent orders were placed from Jaipur and Rajasthan, and the individuals gave addresses in Bengaluru and other metro cities in India. Police arrested three people from Surat, Gujarat, who scammed Meesho of INR 5.5 crore by placing fraud orders. The company filed against these people under the IT Act, IPC Section 419 (cheating by personation) and 420 (cheating and dishonestly inducing delivery of property). The investigation is under process.
(The above story first appeared on LatestLY on Dec 11, 2024 10:23 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).