The fraud, which occurred on September 11 and 12, exploited a vulnerability in the company’s systems following a recent software update.
The Gurugram Police has frozen 2,500 bank accounts having a total of ₹8 crore in connection with the case, a PTI report stated.
According to investigators, the flaw allowed users to process transactions exceeding their wallet balances and, in some cases, even bypass authentication by entering incorrect UPI PINs. This led to more than five lakh fraudulent transfers, with funds scattered across at least 2,500 beneficiary bank accounts.
The breach came to light only on September 13, after a company employee flagged suspicious activity during a routine audit. MobiKwik immediately lodged a police complaint. A representative of One MobiKwik Systems filed a complaint alleging that on September 12, certain suspicious transactions were noticed, which were done by various MobiKwik-registered merchants as well as some unknown persons, the PTI report added.
So far, six people have been arrested and they were remanded to judicial custody after investigators discovered nearly ₹9 lakh of the stolen money in their accounts, a TOI report stated.
Authorities have managed to freeze ₹8 crore, while the company itself has recovered about ₹14 crore, leaving a net impact of around ₹26 crore, it added.
Police suspect insider involvement given the scale and sophistication of the operation.
This is not the first time MobiKwik has faced such an incident. In 2017, the company was similarly defrauded of about ₹19 crore, with funds diverted to thousands of personal accounts, the TOI report stated.
In a statement, the company confirmed it is working closely with banks and law enforcement agencies to track and reclaim the remaining funds. “We are undertaking all possible efforts to recover the amount and minimize financial impact,” the TOI report stated, citing a MobiKwik spokesperson.
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 matter is being probed under charges of cheating and dishonest misappropriation of property.
Shares of One MobiKwik Systems were up 0.3% at ₹299.01 apiece. The stock has gained 32.5% in the past month.
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