**MobiKwik Fraud: 2,500 Accounts Frozen, 6 Arrested in ₹40 Crore Heist**
*By Akash Pandey | September 18, 2025, 05:36 PM*
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**What’s the story?**
MobiKwik, a leading digital payments platform, has suffered a major security breach resulting in an estimated loss of ₹40 crore. The fraud took place over two days earlier this month, on September 11 and 12, exploiting a vulnerability in the company’s systems following a recent software update.
The Gurugram Police have since frozen 2,500 bank accounts linked to the case, holding a total of ₹8 crore, according to PTI reports.
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**Fraud details**
The technical glitch in MobiKwik’s system allowed users to carry out transactions even if their wallets had insufficient balance. In some instances, it even let users bypass authentication by entering incorrect UPI PINs.
This loophole led to over five lakh fraudulent transfers, with the stolen money distributed across at least 2,500 beneficiary bank accounts.
The issue was first detected on September 13 when a company employee noticed suspicious activity during a routine audit.
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**Arrests and investigation**
So far, six people have been arrested in connection with the case. Investigators discovered nearly ₹9 lakh of the stolen money in their accounts, and they have been remanded to judicial custody.
Authorities have frozen ₹8 crore, while MobiKwik has managed to recover approximately ₹14 crore, leaving a net impact of around ₹26 crore.
Police suspect insider involvement due to the scale and sophistication of the operation.
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**Previous incidents**
This isn’t the first time MobiKwik has been targeted. In 2017, the company was defrauded of around ₹19 crore, with funds diverted to thousands of personal accounts.
A MobiKwik spokesperson stated that the company is working closely with banks and law enforcement agencies to track and reclaim the remaining funds.
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**Public appeal**
Meanwhile, the Nuh Police have appealed to the public to report any unexplained cash transfers received on September 11 or 12.
The case is currently being investigated under charges of cheating and dishonest misappropriation of property.
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Stay tuned for more updates on this developing story.
https://www.newsbytesapp.com/news/science/mobikwik-fraud-police-freeze-2-500-accounts-arrests-6/story