Rs 40 crore fraud due to technical glitch, not cybersecurity breach: MobiKwik
17 Sep 2025, 11:27 AMMobiKwik has already recovered Rs 14 crore. An FIR has been filed and over 2,000 merchant bank accounts have been frozen.
Team Head&Tale
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Listed fintech company MobiKwik said that it has been hit by a fraud to the tune of Rs 40 crore that was caused by some of its own registered merchants and users.
The company has already lodged an FIR for the amount of Rs 40 crore, it said in a filing to the stock exchanges.
MobiKwik added that it has already recovered Rs 14 crore and that it is taking aggressive collection efforts while pursuing legal course.
The fintech company explained that the registered merchants and the users involved in the fraud were operating from Haryana.
It noted that none of its employees, key management personnels (KMPs) and insiders were involved in the fraud.
MobiKwik has now issued a statement confirming that "an isolated technical issue on September 11-12, 2025, led to certain failed transactions being incorrectly marked as successful, resulting in unauthorised payouts to some merchants in and around Nuh district of Haryana. A few merchants and users from this area exploited this issue to gain undue financial benefit."
"Upon identification in the early hours of September 12, the company immediately took corrective action and resolved the issue within 45 minutes. The total financial impact has been contained and quantified. An FIR has been filed with local authorities, arrests have been made, and over 2,000 merchant bank accounts have been frozen. Active recovery efforts are ongoing, and a portion of the funds has been recovered."
The Gurugram-based fintech further clarified that this incident did not impact any UPI or Wallet payments, or user account balances. "Also, no legitimate user or merchant suffered any financial loss, and no customer data or credentials were compromised."
"This was not a cybersecurity breach but a limited internal processing error, now fully addressed. As this was an internal issue, no banks or financial institutions were affected," it added.
Last month, MobiKwik moved the Delhi High Court against its IPO book running lead manager, DAM Capital Advisors, alleging that the firm has withheld Rs 42 crore meant for IPO-related expenses.
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