Bengaluru police are investigating a massive e-commerce fraud that has cost Myntra, a leading Indian online fashion retailer, a staggering ₹1.1 crore (approximately $133,000 USD). The scam, which unfolded between March and June of this year, involved a sophisticated operation by a gang based in Jaipur, Rajasthan. The fraud was only uncovered during a routine Myntra audit, highlighting the vulnerabilities inherent in large-scale online retail operations.
The modus operandi was remarkably consistent. The gang placed numerous bulk orders for high-value items—branded shoes, apparel, handbags, cosmetics, watches, and jewelry—through Myntra’s app and website. Critically, they consistently opted for cash-on-delivery (COD) or online payment methods, allowing them to receive the goods before initiating their fraudulent claims.
Upon delivery, the gang systematically filed refund requests based on fabricated discrepancies. Common tactics included reporting product shortages—claiming that only half of a ten-pair shoe order had arrived—or alleging color mismatches. These false claims, supported by strategically vague descriptions, enabled them to exploit Myntra’s return policy and secure refunds without returning the merchandise.
The sheer scale of the operation is alarming. Myntra’s enforcement officer, Sardar MS, revealed that the fraud involved approximately 5,529 fraudulent orders, the vast majority of which were delivered to various addresses across Bengaluru. While Myntra initially sought to file a broader complaint encompassing nationwide losses, Bengaluru police requested that the complaint be confined to losses sustained within the city’s limits.
The investigation points strongly towards a well-organized criminal enterprise operating out of Jaipur. While the gang used addresses in Bengaluru and other major metropolitan areas, some orders were even delivered to seemingly innocuous commercial locations like tea stalls, tailor shops, and small stores. This raises concerns about the potential involvement of accomplices on the ground in Bengaluru who facilitated the delivery and collection process.
This incident serves as a stark reminder of the challenges faced by e-commerce companies in combating sophisticated fraud schemes. The case underscores the need for enhanced security measures, improved verification protocols, and potentially stricter regulations surrounding online transactions and return policies. The Bengaluru police investigation continues, with efforts underway to apprehend the perpetrators and recover the stolen funds. The implications for Myntra, and the wider e-commerce industry, are significant, necessitating a comprehensive review of existing fraud prevention strategies.
