MobiKwik Confirms Financial Fraud Incident in Haryana; Assures No User Account Impact

A technical glitch at fintech company One MobiKwik Systems led to unauthorised payments in Haryana's Nuh district last week. The company confirmed the issue, stating that corrective measures were promptly taken, and the financial impact was contained and quantified. The incident did not affect UPI, wallet payments, or user account balances, according to a company statement.

On September 11-12, 2025, a technical error caused some failed transactions to be wrongly marked as successful. This resulted in unauthorised payouts to certain merchants in and around Nuh. Some merchants and users exploited this glitch for financial gain. Upon discovery on September 12, the company resolved the issue within 45 minutes.

Legal Actions and Financial Recovery Efforts

The Legal Enforcement Agency (LEA) has taken steps to freeze and mark liens on bank accounts where unauthorised settlements occurred. MobiKwik reported in a regulatory filing that an FIR was lodged for Rs 40 crore. So far, Rs 14 crore has been recovered, leaving an estimated net impact of Rs 26 crore. The company is actively pursuing legal actions to recover the remaining amount.

Six individuals have been arrested in connection with the fraud. They include Rehan from Rewasan village; Waqar Yunus, Mohammad Amir, and Mohammad Ansar from Kameda village; Wasim Akram from Maroda village; and Mohammad Sakil from Utawad village in Palwal district. These arrests were made by the police as part of their investigation.

Details of the Fraudulent Activities

During interrogation, the accused revealed that a glitch in the MobiKwik app allowed transactions to complete successfully without sufficient funds or correct passwords. This loophole was exploited for unfair profit. Approximately 2,500 bank accounts that received these funds have been frozen by authorities.

The accused were presented before a city court on Tuesday and have been remanded in judicial custody. MobiKwik has since enhanced its monitoring systems and implemented additional controls to prevent such incidents in the future.

MobiKwik assured that no employees or insiders were involved in this fraud. The company remains committed to recovering the full amount through aggressive collection efforts and legal proceedings over time.

With inputs from PTI