Myntra has suffered significant financial losses, reportedly amounting to Rs 50 crore, due to a sophisticated scam involving fraudulent orders. The company has filed a complaint with the Bengaluru police, initially reporting a loss of Rs 1.1 crore. However, further investigations suggest the total nationwide loss is likely much higher, with the fraudulent activity spanning from March to June this year.

The fraudsters exploited Myntra’s refund system by placing large orders for high-value products such as branded shoes, apparel, cosmetics, and jewelry. After receiving the items, they would lodge false complaints, claiming that some products were missing, damaged, or not as ordered. For instance, an order of 10 pairs of shoes might be claimed as only five being delivered, with the remaining five purportedly missing or incorrect. Similar complaints involved discrepancies in sizes, colors, and product types.

Myntra's customer service system, designed to address legitimate issues, became a target for these scammers. The system allowed easy initiation of refunds for such complaints, often without thorough verification, which was exploited by the perpetrators.

An internal audit revealed that over 5,500 fraudulent orders were placed in Bengaluru alone, with the scam being orchestrated by a group from Jaipur, Rajasthan. These orders were made from Jaipur but were shipped to locations in Bengaluru, often to unusual addresses such as tea stalls, tailor shops, and local stores, making it difficult to trace the fraud.

Myntra’s enforcement officer, Sardar MS, has reported the issue to the police, focusing initially on Bengaluru’s losses. Although the company intended to file a nationwide complaint, local authorities advised them to limit the report to city-specific cases for the time being. The police are currently investigating the matter and are working to track down the scammers in hopes of recovering some of the losses.