Cashback fraud could top ₹10 cr, says Paytm; delists sellers for faking orders

Paytm Mall, the online marketplace business of Alibaba-backed Paytm, said that there could be a potential cashback fraud of over ₹10 crore involving a few employees and merchants.

Paytm’s founder Vijay Shekhar Sharma said 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 cashbacks offered during the festive sale period.

The company has also recently hired consultancy and audit firm EY 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 cash backs by creating fake orders.