Imagine this: you order a pair of shoes online, excited to receive them, only to be hit with a major surprise when the wrong product arrives. While such mistakes are typically resolved with a simple complaint, scammers have turned these situations into a clever racket, costing e-commerce giants like Myntra millions in losses. What seems like a small inconvenience has now become a sophisticated fraud, exploiting online shopping platforms to pocket huge sums.
Myntra, a popular fashion retailer, recently approached Bengaluru police, reporting a loss of Rs 1.1 crore between March and June this year due to fraudulent refund claims. Shockingly, according to a report by TOI, nationwide losses could be as high as Rs 50 crore.
Also read: Two men defrauded Apple of over Rs 20cr in fake iPhone scam: Here’s how they did it
Here’s how the scam works: Fraudsters would place large orders for branded items like shoes, handbags, or cosmetics through the Myntra app or website. Orders were paid online or via cash-on-delivery (COD). Once the items were delivered, the scammers used Myntra’s complaint system to falsely claim issues like receiving fewer items, mismatched products, or non-delivery.
For instance, if someone ordered 10 pairs of shoes, they would allege receiving only 5 and request refunds for the missing pairs. In other cases, they complained about incorrect colours or sizes. Once the complaints were filed, Myntra’s system would process refunds, assuming genuine errors, and the crooks pocketed the money.
Also read: How a Rajasthan duo used fake orders to loot Amazon of cameras and iPhones worth lakhs of rupees
The scam came to light during an audit, which revealed 5,529 fraudulent orders in Bengaluru alone. Fraudsters had given addresses in Bengaluru and other metro cities for deliveries, though the orders were mostly placed from Jaipur.
Myntra had initially sought to file a nationwide complaint but was asked by Bengaluru police to focus on city-specific losses. Investigators suspect a gang in Rajasthan to be behind the scam.
Recently, three individuals were arrested in Gujarat for defrauding another e-commerce company, Meesho, of Rs 5.5 crore through fake orders.
These types of incidents highlight the need for stronger checks in complaint systems.