Fraudsters are exploiting refund policies offered by e-commerce platforms, causing significant financial losses to companies. Myntra, a subsidiary of Flipkart, has filed a complaint with Bengaluru police, alleging a loss of Rs 1.1 crore between March and June this year due to fraudulent refund claims. Nationwide, the company estimates losses of up to Rs 50 crore.
The fraudsters placed bulk orders for branded merchandise, including shoes, apparel, handbags, and jewellery, via the Myntra app or portal. After receiving the deliveries, they raised false complaints, claiming fewer items were delivered or the products received were fake or mismatched.
These fraudulent refunds were deposited into various bank accounts, causing significant losses to the company.
According to a Times of India report, the fraud involved approximately 5,529 orders delivered to addresses in Bengaluru. During an internal audit, the company discovered that most of the fraudulent orders were linked to a gang operating in Jaipur, Rajasthan.
The gang reportedly provided Bengaluru and metro area addresses for delivery, with some parcels sent to commercial establishments 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 booked under the Information Technology Act and sections 419 (cheating by personation) and 420 (cheating and dishonestly inducing delivery of property) of the Indian Penal Code.
While Myntra initially sought to file a nationwide complaint covering its total losses, Bengaluru police advised the company to limit the report to city-specific incidents. The investigation into the Bengaluru fraud is ongoing, and authorities are working to trace the culprits behind the larger network.
