How a Jaipur-based gang duped Myntra of ₹1.1 crore
What's the story
Myntra, India's top e-commerce fashion platform, has been duped of ₹1.1 crore by a Jaipur-based gang.
The fraud was committed between March and June this year, and was discovered during an internal audit by the company.
The police are now investigating the case, which involves fake bulk orders for branded merchandise placed on Myntra's app and website.
Scam strategy
Modus operandi of the refund scam
The fraudsters employed a sophisticated strategy to dupe Myntra. They would place huge orders for branded items like shoes, apparel, and other merchandise like handbags, cosmetics, watches, and jewelry.
After receiving the orders, they would raise complaints of product shortage or color mismatch and seek refunds.
For instance, if an order was placed for 10 pairs of branded shoes, the person would claim only five were delivered.
Fraud epicenter
Myntra's loss traced back to Bengaluru
The police have also revealed that most of the fraudulent orders were delivered in Bengaluru.
Myntra Designs Enforcement Officer Sardar MS, told the police that the company's loss originated from around 5,529 deceptive orders delivered to different addresses across the city.
The Times of India report indicates that a Rajasthan-based gang is suspected to be behind this fraud, as nearly all orders were placed from Jaipur.
Delivery deception
Some orders were delivered to commercial places
The fraudsters smartly used addresses in Bengaluru and other metro cities for delivery.
Some orders were even delivered to commercial places like tea stalls, tailor shops or provision/stationery stores.
Despite Myntra's plan to file a complaint over losses incurred from fraudulent orders delivered nationwide, Bengaluru police have advised the e-commerce platform to restrict their complaint to losses suffered while delivering in the city only.