Rs 40-crore fraud by exploiting MobiKwik app glitch: 2,500 bank accounts frozen, 6 held from Gurgaon

“Approximately 2,500 accounts that received the fraudulent funds were frozen. During questioning, the six accused admitted to exploiting the technical flaw in the MobiKwik app that allowed transactions to be completed successfully even without sufficient balance in the user’s wallet or bank account, or when incorrect passwords were entered. The accused knowingly took advantage of this glitch to conduct fraudulent transactions, causing financial loss to the company,” the spokesperson explained.

The accused have been identified as Rehan, Mohammad Sakil, Wakar Yunus, Wasim Akram, Mohammad Amir, and Mohammad Ansar.

The matter was brought to light after a written complaint was filed on September 13 at the Sector 53 police station in Gurgaon by an authorised representative of M/s One MobiKwik Systems Limited, the operator of MobiKwik. The Indian Express tried reaching out to the complainant but could get a response to the queries regarding the details in the matter.

The company, which facilitates retail payments, merchant transactions, and bill payments, reported suspicious transactions detected during an internal audit on September 12, officers said.

The audit revealed that some MobiKwik-registered merchants and unknown persons exploited a technical glitch in the app that falsely recorded failed transactions as successful, allowing funds to be credited to the merchants’ accounts despite unsuccessful payments. This enabled the accused to illegally transfer money to their bank accounts, resulting in wrongful gains for them and losses for MobiKwik, the complaint noted, according to officers.

The police registered a case under Sections 318(4) (cheating of a valuable security) and 314 (dishonest misappropriation of property) of the Bharatiya Nyaya Sanhita (BNS).

Acting on the complaint, a team of police officers gathered details of the suspected beneficiaries and their bank accounts.

The six accused were produced before a local court on Tuesday, and sent to judicial custody.

“The police are continuing their investigation to identify and apprehend other individuals involved in the fraud. The amount of the fraud may increase as the investigation progresses.”

In August, Policybazaar Insurance Brokers Private Limited too had filed a similar complaint with the Gurugram Police, alleging that unknown persons impersonated its employees, forged documents, and misused the company’s name, ID cards, email IDs, etc, to “dupe” customers.

The FIR in that case mentions that the accused duped 11 customers who made payments ranging from ₹8,510 to ₹35,000 to fake platforms. As per the complaint, the total amount paid by these 11 customers stood at ₹2,08,645.

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