MobiKwik lost Rs 40.2 crore in 48 hours due to a system glitch that allowed UPI transfers beyond wallet balances, even with incorrect PINs.
Online Scams in India
India is among the top 3 countries globally most targeted by phishing scams, according to multiple cyber security reports.
Imagine waking up to find crores vanishing from your company’s account overnight. That’s what happened to MobiKwik earlier this month. A glitch in its updated system allowed users to transfer money far beyond their wallet balance and shockingly, even wrong PIN entries went through.
History Repeats Itself
This isn’t the first time MobiKwik has been caught off guard. Back in 2017, the company was duped of nearly Rs 19 crore in a similar fashion. Eight years later, the digital wallet giant is once again facing tough questions about security.
How the Scam Unfolded
The fraud took place on September 11 and 12. In just two days, nearly five lakh UPI transactions were carried out, amounting to a massive Rs 40.2 crore. The loophole was spotted only after an internal audit flagged suspicious activity, leading to a police complaint.
Arrests in Nuh and Palwal
Police have so far arrested six men (Rehan, Waqar Yunus, Wasim Akram, Mohd Amir, Mohd Ansar and Mohd Sakil). Five of them are from Nuh, while one hails from Palwal. Investigators suspect insiders may have tipped them off about the glitch. Around Rs 9 lakh has been recovered from their accounts, and Rs 8 crore has been frozen across 2,500 bank accounts linked to the fraud.
Police Appeal to the Public
Nuh police have now urged people to come forward if they received suspicious money in their accounts on September 11 or 12. “If anyone wishes to return unauthorised payments, they can approach the SP’s office by September 23,” officials said. Strict action is also promised if company employees are found to be involved.
Company’s Stand
MobiKwik admitted the scale of the breach but stressed that recovery efforts are underway. “Around Rs 14 crore has already been recovered. The net impact currently stands at Rs 26 crore, and we are pursuing aggressive legal and collection efforts,” a spokesperson said.