MobiKwik fraud: 2,500 accounts frozen, 6 arrested in ₹40cr heist
What's the story
MobiKwik, a leading digital payments platform, has suffered a major security breach resulting in an estimated loss of ₹40 crore. The fraud occurred over two days earlier this month, on September 11 and 12. It exploited a vulnerability in the company's systems following a recent software update. The Gurugram Police has since frozen 2,500 bank accounts linked to the case with a total of ₹8 crore, according to PTI.
Fraud details
Fraudulent transactions and technical glitch
The technical glitch in MobiKwik's system permitted users to carry out transactions even if they didn't have enough balance in their wallets. In some cases, it even allowed them to bypass authentication by entering incorrect UPI PINs. This led to over five lakh fraudulent transfers, with the money being distributed across at least 2,500 beneficiary bank accounts. The issue was first detected on September 13 when a company employee noticed suspicious activity during a routine audit.
Arrests made
Suspicions of insider involvement
So far, six people have been arrested in connection with the case. They were remanded to judicial custody after investigators found nearly ₹9 lakh of the stolen money in their accounts. The authorities have frozen ₹8 crore while MobiKwik has managed to recover about ₹14 crore, leaving a net impact of around ₹26 crore. Police suspect insider involvement due to the scale and sophistication of this operation.
Past incident
Previous incident in 2017
Notably, this isn't the first time MobiKwik has been a victim of such an incident. In 2017, the company was similarly defrauded of around ₹19 crore, with funds diverted to thousands of personal accounts. A spokesperson for MobiKwik said they are working closely with banks and law enforcement agencies to track and reclaim the remaining funds.
Information
Nuh Police appeal to public
Meanwhile, the Nuh Police has appealed to the public to report any unexplained cash transfers they may have received on September 11 or 12. The case is being investigated under cheating and dishonest misappropriation of property.