Customers of online shopping store Jumia stole Sh62 million worth of goods through fake electronic payment suppliers.
Jumia which is seeking to sell its shares in the US said part of the risks include customers, sellers, and refunds for faulty goods.
“In addition to seller fraud, we face the risk of fraud perpetrated directly by our consumers. For example, a group of consumers in Kenya fraudulently used electronic payment suppliers to acquire approximately €550,000 in goods on our marketplace in December 2017,” the company said.
In late 2018 the firm’s warehouse in Kenya was robbed, and merchandise with a value of approximately €500,000 was stolen.
The firm said in certain markets, where they offer guarantees in the event that a damaged or defective product is delivered, they have incurred losses.
In Kenya, for example, they recently announced a three-month guarantee on all marketplace products valued above Sh1,500 (approximately €13 as of February 6, 2019), except for consumer goods and beauty and fashion items
Consumer fraud may harm seller confidence in the integrity of our marketplace and the certainty of payment.