Fraudsters Steal ₹1.1 Crore from Myntra Using Fake Refunds

myntra, one of India's leading fashion e-commerce platforms, has fallen victim to a meticulously planned refund scam incurring a loss of ₹1.1 crore. 

A Jaipur-based group exploited the platform’s return and refund policies over several months, placing bulk orders for high-value branded items like apparel, footwear, handbags, and cosmetics. 

The scammers used both online and cash-on-delivery (COD) payment methods, then filed fraudulent refund claims citing issues such as product shortages or incorrect items.

The scam was detected during an internal audit, prompting Myntra to file a complaint with Bengaluru’s cybercrime police. According to the investigation the fraudsters used fake invoices and manipulated the refund system redirecting payments into online accounts. 

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In total over 5000 orders were placed between March and June leveraging these tactics to siphon off the funds.

This incident highlights critical vulnerabilities in e commerce refund mechanisms emphasizing the need for more robust fraud detection systems. Myntra’s case follows a similar scam reported recently, where another e-commerce platform meesho, suffered a ₹5.5 crore loss due to refund manipulation.

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Authorities have registered cases under sections of cheating, impersonation and the IT act and investigations are ongoing to identify the culprits. 

The incident has sparked industry wide discussions on strengthening cybersecurity and customer verification process to safeguard against such fraud activities.

The scam underscores the growing challenge faced by ecommerce platforms in managing large scale operations ensuring compliance without being exploited by criminal networks. 

This event serves as a reminder for companies to bolster their defenses and for consumers to remain vigilant while using online platforms.

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