Gurugram Police Bust Rs 40 Crore Fraud in MobiKwik App Glitch
Gurugram Police have cracked down on a massive Rs 40 crore fraud linked to a technical glitch in the popular fintech app MobiKwik. They arrested six suspects who exploited the flaw to siphon off money from failed transactions. This shocking case has sparked worries about the security of digital payment platforms and why such vulnerabilities keep popping up.
The glitch let fraudsters complete transactions even without enough money in their bank accounts or wallets, or by using wrong passwords. The accused cleverly transferred these "successful" funds to their own accounts, leading to huge losses for MobiKwik. Police say around 2,500 bank accounts got tangled in this scam, and they’ve frozen them all. So far, they’ve recovered nearly Rs 8 crore.
The six arrested men—Rehan, Mohammad Sakil, Wakar Yunus, Wasim Akram, Mohammad Amir, and Mohammad Ansar—hail from Gurugram. Police nabbed them and sent them to judicial custody after a court appearance. The fraud surfaced when MobiKwik spotted suspicious activity during an internal audit on September 12 and filed a complaint the next day.
Investigators found that some registered merchants on the app, along with other unknown people, abused the glitch to credit money from transactions that actually failed. This cheated the company and gave the fraudsters easy gains. Police have booked them under Sections 318(4) for cheating and 314 for dishonest misappropriation under the Bharatiya Nyaya Sanhita. The probe continues, and more arrests could follow.
MobiKwik has assured users this isn’t a cybersecurity breach—no customer data, credentials, or merchant info got leaked. In a stock exchange filing, the company said they’re pushing hard to recover the full amount through legal action and aggressive collections. But with the investigation just starting, they can’t yet say the exact impact.
This isn’t the first fintech fraud in Gurugram. Just last month, Policybazaar Insurance Brokers reported a scam where crooks posed as their staff, faked documents, and used company IDs and emails to trick customers. They duped at least 11 people, pocketing between Rs 8,510 and Rs 35,000 each, for a total of Rs 2.08 lakh.
Fintech experts are sounding alarms, saying these repeated glitches and scams could erode trust in digital wallets and payment apps. They’re calling on regulators, the Enforcement Directorate (ED), and the Central Bureau of Investigation (CBI) to dig deeper into why these flaws happen so often and if bigger systemic issues lurk in the background. With millions relying on apps like MobiKwik for quick transactions, better safeguards seem urgent to keep users safe.
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