MobiKwik Addresses Rs 40 Crore Fraud Incident

A day after revealing that MobiKwik faced a fraud amounting to Rs 40 crore in Haryana, the fintech company has clarified that the occurrence was a result of an isolated technical issue rather than a cybersecurity breach. Initially, the fraud was reported to the stock exchange (NSE) earlier this week. On Thursday, MobiKwik issued an official press release to further explain the situation and updated its clarification on the exchange platform.

Details of the Incident

According to the company, the glitch transpired between September 11 and September 12, leading to some failed transactions being inaccurately marked as successful. This resulted in unauthorized payouts to specific merchants located in and around the Nuh district of Haryana. It is alleged that several merchants and users took advantage of this error for improper financial gain.

Response and Recovery

MobiKwik reported that the issue was identified and rectified within 45 minutes during the early hours of September 12. An FIR has been lodged, arrests have been executed, and over 2,000 merchant bank accounts have been frozen. The company has indicated that efforts to recover the funds are ongoing, and a portion of the money has already been retrieved.

No Cybersecurity Breach

Significantly, MobiKwik highlighted that the glitch did not impact UPI or wallet payments, customer balances, legitimate merchants, or banks. The company noted that this was not a cybersecurity breach but rather a confined internal processing error, which has now been fully resolved.

As of 10:03 AM, MobiKwik’s share price is Rs 297, showing a decrease of 1.38% from its opening price.