Startup Employee Pulls Off ₹2 Lakh Scam Within a Week, Quits Job Immediately

New Hire Betrays Trust in Record Time: In today’s fast-paced startup culture, the story of a new employee at sneaker startup Gully Labs is a cautionary tale for founders and HR teams alike. According to co-founder Arjun Singh, the employee managed to defraud the company of ₹2 lakh within just one week of joining—and then quit.

How the Fraud Happened
The employee, hired as a customer service executive, quickly exploited the company’s systems. They generated 100% discount codes and used them to order sneakers worth ₹2 lakh. The codes were not only used personally but were also shared with friends, amplifying the financial loss.

Singh recounted the incident on X (formerly Twitter):

“We hired a customer service person a few months ago. Within the first week, they generated 100% discount codes, used them themselves, shared with friends, and placed orders worth ₹2 lakh. Then they quit within a week.”

Impact on the Startup
Although the employee returned some products after being confronted, half of the sneakers were already used, leaving the company to absorb a substantial financial hit. Singh explained that this incident prompted Gully Labs to implement stricter backend permission controls to prevent such breaches in the future.

Legal Hassles and Cultural Shock
The employee even sent legal notices in response to demands for product returns or payment, further complicating matters for the small startup. Singh emphasized that the real loss isn’t just the stolen sneakers, but the erosion of trust in a small team environment.

Public Reaction
The post went viral, garnering over 185,700 views, and prompted strong reactions from social media users. Many noted the difficulty of maintaining a trust-based culture in early-stage startups:

“The real loss isn’t the stolen shoes. It’s that now you have to view your team as potential thieves,” wrote one user.

Others suggested publicly naming such employees to prevent similar incidents, highlighting the challenge startups face in balancing trust and security.

This incident underscores the risks startups face with rapid hiring and the need for robust internal controls, especially in small teams handling high-value transactions.