The Gurugram Police announced on September 16 that they have uncovered a major fraud involving illegal transactions worth Rs 40 crore, linked to a glitch in the MobiKwik app, a fintech platform. Six individuals were arrested from Gurgaon on September 15 in connection with the case.
Authorities identified around 2,500 bank accounts involved in receiving the fraudulent funds, all of which have now been frozen. So far, Rs 8 crore has been recovered from these accounts, a police spokesperson said September 16 evening.
“About 2,500 accounts that received the fraudulent money were frozen. During interrogation, the six accused admitted to exploiting a technical flaw in the MobiKwik app. This glitch allowed transactions to go through even without sufficient balance in the user’s wallet or bank account, or when incorrect passwords were entered. The accused deliberately took advantage of this vulnerability to carry out fraudulent transactions, resulting in financial losses for the company,” the spokesperson explained. The accused have been named as Rehan, Mohammad Sakil, Wakar Yunus, Wasim Akram, Mohammad Amir, and Mohammad Ansar.
The case came to light after a written complaint was filed on September 13 at the Sector 53 police station in Gurgaon by an authorised representative of M/s One MobiKwik Systems Limited, the company behind the MobiKwik app. Attempts were made to contact the complainant for further details, but no response was received.
According to officials, the company, which provides services such as retail payments, merchant transactions, and bill payments, flagged suspicious activity during an internal audit conducted on September 12.
The audit uncovered that certain MobiKwik-registered merchants, along with unidentified individuals, had exploited a technical flaw in the app.
The glitch caused failed transactions to be falsely recorded as successful, allowing funds to be credited to merchant accounts even when payments did not go through. This vulnerability was used by the accused to illegally transfer money into their bank accounts, resulting in unlawful financial gains for them and significant losses for MobiKwik, the complaint stated.
The police have registered a case under Sections 318(4) (cheating involving valuable security) and 314 (dishonest misappropriation of property) of the Bharatiya Nyaya Sanhita (BNS).
Following the complaint, a police team began gathering information on the suspected beneficiaries and their associated bank accounts. All six accused were presented before a local court on Tuesday and have been remanded to judicial custody.
“The investigation is ongoing to identify and arrest other individuals who may be involved in the fraud,” a police official said. “The total amount of the fraud could rise as the inquiry continues.”
In August, Policybazaar Insurance Brokers Private Limited also lodged a similar complaint with the Gurugram Police, alleging that unidentified individuals impersonated company employees, forged documents, and misused its name, ID cards, and email addresses to defraud customers.
According to the FIR, the accused targeted 11 customers, tricking them into making payments between Rs 8,510 and Rs 35,000 to fake platforms. The total amount collected from these victims amounted to Rs 2,08,645, as stated in the complaint.
