TIL Desk/Business/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 cashbacks 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.
A brainchild of Paytm Founder and CEO Vijay Shekhar Sharma, the ecommerce platfom’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.
