MobiKwik clarifies fraud was due to internal glitch, not cyberattack

A day after reporting that MobiKwik was hit by a fraud of around Rs 40 crore in Haryana, the fintech company has issued a clarification stating that the incident was triggered by an “isolated technical issue” and not a cybersecurity breach.

The company had first reported the fraud to the stock exchange (NSE), earlier this week. On Thursday, MobiKwik followed it up with an official press release and also updated its clarification on the exchange platform.

According to the company, the glitch occurred between September 11–12 when some failed transactions were wrongly marked as successful, resulting in unauthorized payouts to certain merchants in and around the Nuh district of Haryana. A few merchants and users allegedly exploited the error for undue financial gains.

MobiKwik said the issue was detected and fixed within 45 minutes in the early hours of September 12. An FIR has been filed, arrests have been made, and more than 2,000 merchant bank accounts have been frozen. The company added that recovery efforts are ongoing and a portion of the funds has already been retrieved.

Importantly, the company emphasized that the glitch did not affect UPI or wallet payments, customer balances, legitimate merchants, or banks. “This was not a cybersecurity breach but a limited internal processing error, now fully addressed,” the company noted.

As of 10:03 AM, Mobikwik's share price is Rs 297, reflecting a 1.38% decrease from its opening price.