Fraud targeting e-commerce platforms has surged recently, with major retailers like Amazon and Flipkart affected. Myntra has reported losses of Rs.50 crore due to fraudulent refund claims, particularly in Bengaluru, where Rs.1.1 crore was lost between March and June 2024. Scammers exploited refund policies by claiming full refunds for items that were never returned or received. Operating from Jaipur, the fraudsters placed large orders for branded clothing, falsely claiming that some items were missing to secure refunds. They even alleged that items were counterfeit to bolster their claims. The gang used inconspicuous delivery addresses, such as tea stalls and small shops, to avoid detection, resulting in around 5,529 fake orders being delivered. Myntra has filed a complaint with the Bengaluru Police, linking the scheme to a larger nationwide scam.
A Myntra representative cited by Mint disclosed that the scale of the fraud was significant, with the criminal group targeting multiple cities while employing various fictitious identities and addresses. This strategy enabled them to circumvent Myntra’s usual verification protocols, resulting in considerable refunds being extracted from the company. Regrettably, Myntra is not alone in experiencing such fraudulent activities; other e-commerce platforms, including Meesho, have also reported similar incidents. Meesho, for example, has indicated a financial loss of ₹5.5 crore attributed to counterfeit and fraudulent orders within the nation. E-commerce platforms have consistently grappled with the challenges posed by fraudsters who take advantage of return and refund policies. These schemes frequently involve the submission of false claims regarding defective or undelivered products, complicating the ability of companies to distinguish between legitimate returns and deceitful actions. As e-commerce becomes increasingly embedded in consumers’ shopping routines, the prevalence of these frauds is anticipated to rise, presenting significant financial and operational threats to businesses.
