**MobiKwik Fraud: 2,500 Accounts Frozen, 6 Arrested in ₹40 Crore Heist**

*By Akash Pandey | Sep 18, 2025, 05:36 PM*

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**Overview**

MobiKwik, a leading digital payments platform, has recently suffered a major security breach resulting in an estimated loss of ₹40 crore. The fraud took place over two days — September 11 and 12 — exploiting a vulnerability in the company’s systems following a recent software update.

According to PTI, the Gurugram Police have frozen 2,500 bank accounts linked to the case, holding a total of ₹8 crore.

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**Fraud Details**

A technical glitch in MobiKwik’s system allowed users to carry out transactions even without sufficient balance in their wallets. In some instances, users could bypass authentication by entering incorrect UPI PINs. This loophole led to over five lakh fraudulent transfers, with funds distributed across at least 2,500 beneficiary bank accounts.

The issue was first detected on September 13 when an employee noticed suspicious activity during a routine audit.

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**Arrests and Investigation**

So far, six individuals have been arrested in connection with the case. After investigation, nearly ₹9 lakh of the stolen money was found in their accounts. These suspects have been remanded to judicial custody.

Authorities have frozen ₹8 crore, while MobiKwik has already managed to recover approximately ₹14 crore, leaving a net loss of around ₹26 crore.

Given the scale and sophistication of the operation, police suspect insider involvement.

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**Previous Incident**

This is not the first time MobiKwik has been targeted by fraudsters. In 2017, the company faced a similar heist involving a loss of about ₹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 under investigation for 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