Bengaluru-based fashion retailer Myntra has reported a massive fraud to the city police, alleging a financial loss of ₹1.1 crore between March and June this year. Fraudsters exploited the complaint and refund mechanism provided by the Flipkart subsidiary, creating significant challenges for the firm. Insider sources suggest the nationwide losses might be closer to ₹50 crore.
The scam involved placing bulk orders for high-value items such as shoes, apparel, handbags, cosmetics, watches, and jewelry through Myntra’s platform. Payments were made either online or via cash-on-delivery (COD). Once the products were delivered to the given addresses, the fraudsters utilized the refund or complaint system to recover their money, claiming fake issues with the orders.
Myntra fulfilled the orders using its logistics services, only to find itself at the receiving end of this calculated misuse. Such loopholes, designed to enhance customer and supplier convenience, have become a breeding ground for fraudulent activities, highlighting the need for tighter systems.
The incident underscores the vulnerabilities in the e-commerce ecosystem, urging firms to reevaluate and fortify their fraud detection mechanisms.
Read Also;