There is a cashback scam found in famous digital wallet company Paytm. The com Paytm has caught more than Rs. 10 crores fraud. The fraud has been discovered in cashback given to customers on behalf of the Paytm Mall. According to Vijay Shekhar Sharma, founder of the company, this fraud involves hundreds of shopkeepers and some employees of Paytm. After the detection of counterfeiting, the company has dismissed many employees. And hundreds of merchants have removed their platform from their platform.
Vijay Shekhar Sharma said that this was done by the collision of fraudulent employees and vendors. In fact, some small vendors were negotiated with the staff of junior level of Paytm. Some such employees, along with some vendors, gave fake orders to the company and then used to take advantage of cashback offers. After Diwali, the team of Paytm examined it and found that small sellers are getting more money in the form of cash back.
Auditors were put in to investigate the matter. Sharma told that his team told the auditors that they would thoroughly investigate the entire matter. Paytm has hired consultancy firm Ernst & Young EY for audit. EY caught this game of fraudulence within a few days. Investigators came to know that some vendors were earning cashback with the involvement of junior-level employees.
Investigations revealed the collapse of some employees and vendors of the company. This fraud is definitely more than Rs. 10 crores. Sharma said the company will ensure that only big brands will be an official vendor on our platform. Even before this, there was a big case of data theft in the company, in which many people were arrested. The founder of Paytm Vijay Shekhar Sharma had established the Paytm Mall platform in April 2017. Paytm Mall has raised $ 650 million or about 45,000 crore rupees from Alibaba, Softbank and SAIF Partners. Alibaba Group’s company, Ant Financial, has a 42 percent stake in Paytm Mall.
Distressed by the cashback fraud incidents, Paytm has announced a partnership with Ernst & Young EY. Ernst & Young is a Global Professional Service Provider Company. This will help save Paytm from fraud like cashback and data theft. According to Paytm Senior Vice President Srinivas Mohite, this partnership will help in establishing the world’s best working system to ensure no fraud is done in the future.