Rs 40-Crore Fraud Busted: Six Arrested for Exploiting MobiKwik App Glitch, 2,500 Bank Accounts Frozen
Rs 40-Crore Fraud Busted: Six Arrested for Exploiting MobiKwik App Glitch, 2,500 Bank Accounts Frozen
Police uncover massive fintech scam; Rs 8 crore recovered so far, probe continues
Gurugram Police have exposed a large-scale fraud involving the MobiKwik app, where six men allegedly exploited a technical glitch to siphon off nearly Rs 40 crore. The accused identified as Rehan, Mohammad Sakil, Wakar Yunus, Wasim Akram, Mohammad Amir, and Mohammad Ansar were arrested in Gurgaon on Monday and later sent to judicial custody.
Investigators revealed that the suspects discovered a loophole in the app that falsely marked failed transactions as successful, even when users had insufficient balance or entered incorrect passwords. By exploiting this flaw, they illegally credited money to merchant accounts and then transferred the funds into their bank accounts.
A complaint filed by One MobiKwik Systems Limited on September 13 led to the arrests. The company had first noticed irregularities during an internal audit on September 12, which revealed suspicious transactions linked to merchants and unknown individuals.
So far, police have frozen approximately 2,500 bank accounts connected to the fraud and recovered Rs 8 crore. Authorities cautioned that the fraud amount could rise as the investigation expands to identify other beneficiaries.
The FIR has been registered under Sections 318(4) (cheating involving valuable security) and 314 (dishonest misappropriation of property) of the Bharatiya Nyaya Sanhita (BNS).
This case follows a similar complaint filed in August by Policybazaar Insurance Brokers Pvt. Ltd., which reported that fraudsters impersonated employees and duped customers through fake IDs and forged documents. Police are investigating whether the two cases are linked.
