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Cashback fraud-hit Paytm Mall partners EY to catch conmen

IANS  |  New Delhi 

Rattled by frequent cashback incidents involving its staff, platform Mall has announced a partnership with Global professional services firm to build a technology-driven prevention system.

The move is to undertake frequent audits to identify and prevent collusion, implement learnings from global practices as it expand operations into other geographies and strengthen the processes for merchant on-boarding and marketing, the company said in a statement on Monday.

A report in The Times of India, citing sources, claimed on Sunday that some Mall staff colluded with third-party vendors, created fake orders and received kickbacks for their assistance.

Alibaba-backed Mall, however, did not address the report directly in the statement.

"Our partnership with will help benchmark with global best practices as we build a 'Technology Driven Prevention System' to scale our operations.

"Our teams continue to work closely with to share our learnings and insights. We are committed to build a trusted commerce platform and will take strict action against wherever needed," said Srinivas Mothey, Senior Vice President-

The company said it continues to de-list fraud merchants and take strict action wherever needed.

"Apart from admin, 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)," say

Over the past few years, Paytm has been bleeding massively in business and there is no respite in sight.

The brainchild of Paytm Founder and 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 almost halved in 2018 -- to 3 per cent from 5.6 per cent in 2017.

Paytm Mall is far behind the top two 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, and

--IANS

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, May 13 2019. 13:14 IST
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