How did an employee defraud Gully Labs of ₹2 lakh?

An employee created 100% discount codes, enabling him to place orders for himself and friends without payment, leading to a ₹2 lakh loss for the company.

What measures is Gully Labs implementing after the fraud?

Gully Labs is enhancing security by implementing permissioning on their backend systems to prevent future fraudulent activities.

What is the key lesson learned from the employee fraud incident?

The incident teaches that growing brands must implement robust security measures and remain vigilant, as blind trust in employees can lead to significant financial losses.

Home / Business and Economy / Employee Embezzlement: Sneaker Brand Loses ₹2 Lakh

Employee Embezzlement: Sneaker Brand Loses ₹2 Lakh

22 Feb

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Summary

A customer service employee created 100% discount codes for personal orders.
The fraudulent employee caused a loss of ₹2 lakh to the sneaker brand.
The employee resigned and disappeared after committing the fraud.

A sneaker brand, Gully Labs, experienced a substantial financial loss of ₹2 lakh within a single week. The incident was caused by a newly hired customer service executive who allegedly created fraudulent 100% discount codes.

This employee gained administrative access and generated codes that marked orders as fully paid, despite no funds being received. He then used these codes to place orders for personal gain and for friends and family. Consequently, merchandise valued at approximately ₹2 lakh was dispatched from the warehouse without proper payment.