Myntra loses over ₹1 crore in refund scam: Here’s how fraudsters got…

Myntra has fallen victim to a major refund scam, losing over ₹1.1 crore. Here's how fraudsters exploited the system to carry out their scheme.

Myntra loses over Rs. 1.1 crore in a refund scam involving bulk orders and false complaints. (MINT_PRINT)

Myntra, the fashion e-commerce platform owned by Flipkart, has suffered significant financial losses due to a refund scam that exploited its customer-friendly policies. The fraud was discovered during a routine audit, revealing a complex scheme that defrauded the company of millions of rupees.

The scammers placed bulk orders for high-ticket items, including branded shoes, clothing, and accessories. Upon receiving the products, they filed false complaints claiming issues such as missing items, incorrect products, or non-delivery. Myntra's refund system allowed customers to report issues like shortages or incorrect orders, triggering a refund process once complaints were submitted, according to a Times of India report. 

The scale of the fraud is staggering, with preliminary estimates indicating Myntra may have lost over Rs. 50 crore across India. In Bengaluru alone, police identified over 5,500 fraudulent orders, causing significant damage to the company's finances.

How the Scam Unfolded

A police officer explained the modus operandi, noting that scammers often ordered multiple high-value items, such as branded shoes, and after receiving the delivery, would falsely claim part of the order was missing, TOI reported. For instance, an order for 10 pairs of shoes would lead to a complaint stating that only five were delivered, prompting a refund request for the undelivered items.

Investigators traced the fraud to a gang operating in Jaipur, Rajasthan. Most of the fraudulent orders were placed from Jaipur, with delivery addresses in Bengaluru and other metropolitan areas. Some of the shipments were sent to commercial locations like tea stalls, tailor shops, and small retail stores, making it harder for the company to identify the scam.

A Growing Problem Across E-commerce Platforms

This incident is not isolated to Myntra. In another case, cybercrime police in Surat, Gujarat, arrested three individuals for defrauding the e-commerce platform Meesho in a similar scheme, cheating the company out of Rs. 5.5 crore.

Myntra initially planned to file a nationwide report to cover all its losses, but Bengaluru police advised focusing on local incidents. Investigations are still ongoing, and authorities are working to uncover the larger network behind these fraudulent operations.