Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
CO-PRESENTED BY
LIVE TV DownloadNews18 App
News18 English
272
nda:
Needmore seats to Win
Needmore seats to Win
upa:
»
2-min read

Paytm Mall Says Cashback Fraud of up to Rs 10 Crore Detected

The fraud was detected through a tool that the company developed in partnership with global professional services firm EY (formerly Ernst and Young).

IANS

Updated:May 15, 2019, 7:41 PM IST
facebookTwittergoogleskypewhatsapp
Loading...
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 IANS.

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.

"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," Mothey added.

Over the past few years, Paytm has been bleeding massively in 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 managed to raise over $650 million from Alibaba, SoftBank and SAIF Partners.
(Get detailed and live results of each and every seat in the Lok Sabha elections and state Assembly elections in Andhra Pradesh, Odisha, Arunachal Pradesh and Sikkim to know which candidate/party is leading or trailing and to know who has won and who has lost and by what margin. Our one-of-its-kind Election Analytics Centre lets you don a psephologist’s hat and turn into an election expert. Know interesting facts and trivia about the elections and see our informative graphics. Elections = News18)
Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwittergoogleskypewhatsapp
 
 

Live TV

Loading...
Countdown To Elections Results
  • 01 d
  • 12 h
  • 38 m
  • 09 s
To Assembly Elections 2018 Results