• Home
  • Global News
  • Paytm Mall Says Up To Rs. 10-Crore Cashback Fraud Detected
Paytm Mall Says Up To Rs. 10-Crore Cashback Fraud Detected
Global  
NDTV

According to Forrester Research, the market share of Paytm Mall almost halved in 2018 -- to 3 per cent from 5.6 per cent in 2017.

 

NEW DELHI: Paytm Mall on Tuesday said it has been hit by a cashback fraud which could be in the range of Rs. 5-10 crore. The fraud was detected through a tool that the company developed in partnership with global professional services firm EY (formerly Ernst and Young), said a Paytm Mall spokesperson.
 
He said Paytm went for a deeper audit after it found that some small sellers were getting large percentage of the cashback offered at Paytm Mall.
 
The audit reportedly revealed that a number of employees were colluding with junior employees to earn the cashbacks.
 
"The fraud is in the range of Rs. 5-10 crore," the spokesperson told news agency IANS.
 
A brainchild of Paytm founder and CEO Vijay Shekhar Sharma, the e-commerce platform's losses have mounted and in the financial year 2018, the company posted a loss of nearly Rs. 1,800 crore on revenue of Rs. 774 crore.
 
According to Forrester Research, the market share of Paytm Mall almost halved in 2018 -- to 3 per cent from 5.6 per cent in 2017.
 
"Our partnership with E&Y will help benchmark with global best practices as we build a technology driven fraud prevention system to scale our operations," Srinivas Mothey, senior vice president, Paytm Mall, said in a statement on Monday.
 
"Our teams continue to work closely with E&Y to share our learnings and insights. We are committed to building a trusted commerce platform and will take strict action wherever needed," Mr Mothey added.

 

Over the past few years, Paytm has been bleeding massively in its online retail business and there is no respite in sight. Apart from admin, finance and other support functions, the company also has a business operations team which works closely with partnered merchants to plan and execute cashback offers and promotions leaving a scope for collusion.
 
"The EY partnership will also undertake audit and fraud prevention using both human and Artificial Intelligence (AI)," said Paytm Mall.
 
Paytm Mall is far behind the top two e-commerce players in terms of market share. They have a single-digit share against the top leaders which are commanding over 30 per cent market share.
 
Paytm Mall has so far raised over $650 million from Alibaba, SoftBank and SAIF Partners.

 
 


 
 


 
More in Global
7 best ways to buy diwali corporate gifts for employees and clients on...

With the expansion of the corporate world taking place at a fast pace, and the cut throat competition, companies are forced to implement innovative ideas of getting...

Recently posted . 3 views

A couple bought the house that inspired 'The Conjuring' — and surprise...

• A couple recently bought the house that inspired the horror movie "The Conjuring." •...

Recently posted . 5 views

Mathematician Who Cracked Nazi Code To Win World War II To Appear On N...

Alan Turing's electromechanical machine unravelled the Enigma code used by Nazi Germany and helped give the Allies an advantage in the naval struggle for contro...

Recently posted . 10 views

Bad Habits Highly Successful People Have Given up

If there’s something that truly unites all people it’s that we all pick up bad habits. For some reason, we fall prey all too often to negative behavior ...

Recently posted . 4 views

What is the best age to marry according to your horoscope sign?

Astrology provides beautiful answers and helps penetrate them. It considers our behavior, aspirations, and abilities differently in various areas of life. This ap...

Recently posted . 3 views

A man went blind after contracting a parasite from showering with his ...

• A man says he went blind in one eye after wearing contacts in the shower. He detailed his experience in an essay for the Shrops...

Recently posted . 4 views

 
 
 

Prashnavali

Thought of the day

"Don’t worry about failures, worry about the chances you miss when you don’t even try."
Jack Canfield