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Data Breach – Paytm Cashback fraud could top ₹10 crore
- By Elite CIO
May 16, 2019
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Data Breach – Paytm Cashback fraud could top ₹10 crore
The company got to know about a possible scam post Diwali last year, after the company noticed that a few sellers were getting a large percentage of cashback offered during the festive sale period. The company has also recently hired consultancy and audit firm to conduct an audit and probe into the matter.
It found that some sellers in collusion with employees of Paytm were trying to siphon off cashback by creating fake orders. They said that the company has already initiated action against the “Wrong –doers”, and a few sellers have been delisted. The incident of a possible fraud comes at a time when Paytm’s e-commerce business seems to be losing steam as it plans to pivot its current business model.
In March this year that the company has been scaling down its B2C (business to consumer) business, shutting down the fulfillment centers and has almost stopped giving cash backs, thus resulting in a massive drop in traffic to the Paytm Mall’s website.
A New-York based website that provides web analytics for businesses, the traffic to Paytm Mall has come down to five million per month in January 2019, a whopping 88% decline from 45 million visitors a month in October last year.
Author : Atul Bansal, Gateway Rail