Capillary Technologies hit by cyber fraud at overseas subsidiary
07 Jul 2026, 11:47 AMCapillary added it has recovered around Rs 4.9 crore and has identified additional funds while securing the freezing of related bank accounts.
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Capillary Technologies has disclosed that a recently acquired overseas step-down subsidiary was targeted in a sophisticated cyber fraud that led to the unauthorised transfer of nearly €3 million (around Rs 32.7 crore), according to the company's filings with the stock exchanges.
The Bengaluru-based customer engagement and loyalty solutions provider said the attackers used deepfake technology, voice impersonation, forged documents and social engineering techniques to impersonate senior company executives and fraudulently authorise the transfers.
Following the incident, the company said it initiated recovery efforts with banks, cybercrime agencies and law enforcement authorities. It has also notified its insurer, as the affected subsidiary is covered under a cybercrime and fraud insurance policy. The extent of insurance recovery and the final financial impact are yet to be determined.
Capillary added it has recovered around €0.45 million (Rs 4.9 crore) and has identified additional funds while securing the freezing of related bank accounts. The company said this could further reduce potential losses, although it did not disclose the amount currently frozen.
Capillary said the fraud occurred shortly before the weekend and that its immediate priority was tracing and securing funds in coordination with banks and investigating agencies. This, it said, resulted in a delay in informing the stock exchanges.
The company added that the incident did not involve any breach of customer data, employee information or core technology systems. It said business operations remain unaffected and that the cyber fraud has not altered its growth strategy or long-term business objectives.
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