Digital wallet company This case raised doubts on security system on the digital wallet. In its complaint, Paytm elucidated 26 cases where a refund was claimed and processed after the delivery of goods was successfully made.
“The technical analysis of the e-commerce service provider states that this cannot happen without involvement and knowledge of its employees,” the FIR said.
"In the physical goods marketplace business, it was identified that certain fraudulent users were trying to unlawfully game the system. We have identified each of these cases and initiated legal proceedings," a Paytm spokesperson told Business Insider.
Paytm said it regularly monitors its marketplace business to identify any fraudulent or suspicious behavior. "This is a part of the company’s security practices to ensure that genuine users are able to continuously avail the benefits brought by the Paytm marketplace," stated Paytm.
Paytm is garnering headlines, especially after demonetisation, and has made the most of cash ban since November 08. Paytm’s
Paytm saw a 700% hike in its customer traffic. It hired 9,000 staff to move on with their payments bank and help achieve cashless India goals.