Myntra Faces Rs 1.1 Crore Scam: Frauds Exploit Refund Policy – Know Full Story

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New Delhi: E-commerce platforms are facing a new wave of fraud as scammers exploit refund policies to cause massive financial losses. Myntra, a leading fashion retailer recently reported losing Rs 1.1 crore between March and June this year to fraudulent refund claims in Bengaluru alone. Nationwide, the company estimates these losses to be as high as Rs 50 crore.

Fraudsters targeted Myntra by placing bulk orders for luxury items like high-end clothing, shoes, branded handbags, wristwatches and jewelry. After receiving their order they would file complaints on the Myntra app or website, falsely claiming that the items were incorrect or incomplete. As a result, Myntra would issue refunds for the supposedly missing products.

The refunded amounts from these fraudulent claims were deposited into multiple bank accounts. This led to substantial financial losses for Myntra. A Times of India report revealed that the scam involved around 5,529 orders delivered to Bengaluru addresses. An internal audit uncovered that most of these fraudulent activities were traced back to a gang based in Jaipur, Rajasthan.

The gang is said to have used Bengaluru and metro area addresses for deliveries with some parcels being sent to small businesses like tea stalls, tailor shops and stationery stores. The issue is not unique to Myntra. In a related case, cybercrime police recently arrested three individuals in Surat, Gujarat, for defrauding another e-commerce platform, Meesho. They posed as both suppliers and customers, cheating the company out of Rs 5.5 crore through similar fraudulent orders.

The suspects have been charged under the Information Technology Act, along with sections 419 (cheating by impersonation) and 420 (cheating and dishonestly inducing delivery of property) of the Indian Penal Code.

Initially, Myntra aimed to file a nationwide complaint addressing its overall losses. However, Bengaluru police suggested focusing the report on cityspecific cases. The investigation into the Bengaluru fraud is ongoing, with authorities actively working to identify and track down those involved in the broader network.