₹40 Crore MobiKwik Scam Busted: 2,500 Bank Accounts Frozen, Six Arrested in Gurugram

MobiKwik Fraud Case: In a major breakthrough, Gurugram Police have unearthed a massive financial scam worth over ₹40 crore, carried out by exploiting a technical flaw in the popular MobiKwik mobile app. Authorities confirmed that 2,500 bank accounts linked to suspicious transactions have been frozen, and about ₹8 crore has already been recovered.

Six Accused Arrested

The police revealed that six individuals were arrested on September 15 in connection with the fraud. They were produced before a court the following day and subsequently sent to judicial custody. The accused have been identified as Rehan, Mohammad Sakil, Vakar Yunus, Wasim Akram, Mohammad Amir, and Mohammad Ansar.

According to investigators, the group deliberately misused a glitch in the app that allowed them to complete fraudulent transactions even when accounts had insufficient balances, incorrect passwords, or failed transfers. By exploiting this loophole, the accused managed to siphon off crores of rupees, causing significant financial losses to the company while enriching themselves.

How the Fraud Was Detected

The scam came to light after One MobiKwik Systems Limited filed a written complaint with Gurugram’s Sector-53 police station on September 13. The company explained that an internal audit conducted on September 12 revealed suspicious activities.

Audit reports showed that certain registered merchants and unidentified individuals had manipulated the app’s technical flaw to make failed transactions appear successful, transferring large sums into their personal bank accounts. The discovery prompted MobiKwik to alert authorities immediately.

Police Action and Recovery

Following the complaint, Gurugram Police launched a swift investigation. They identified approximately 2,500 bank accounts involved in the suspicious transactions. These accounts have now been frozen, and investigators have already recovered ₹8 crore from them.

A police spokesperson confirmed that the accused had systematically used the loophole to defraud the fintech company, warning that the actual loss amount could be much higher as investigations continue.

Legal Proceedings Underway

Police have booked the suspects under multiple provisions of the Bharatiya Nyaya Sanhita (BNS), including:

• Section 318(4): Fraud involving valuable security

• Section 314: Dishonest misappropriation of property

Authorities are now working to identify other individuals connected to the case, with more arrests expected. Officials have also stated that the total fraud figure is likely to rise as the probe expands.

Not the First Such Incident

This is not the first time Gurugram Police have dealt with a major cyber fraud linked to fintech companies. In August 2025, Policybazaar Insurance Brokers Pvt Ltd lodged a complaint alleging that fraudsters impersonated company employees using fake identity cards and email IDs to cheat customers.

In that case, 11 customers were duped of amounts ranging from ₹8,510 to ₹35,000, totaling ₹2,08,645. While the financial damage was smaller, the case highlighted the growing threat of cyber-enabled fraud targeting financial institutions and their users.

Rising Concerns Over Fintech Security

The MobiKwik case has raised fresh concerns about the security of digital payment platforms in India. With millions relying on fintech apps for daily transactions, experts warn that even minor technical flaws can lead to large-scale financial crimes if not promptly addressed.

Regulators and industry players are expected to push for stricter security audits, real-time fraud detection systems, and stronger verification processes to safeguard users.

Final Word

The ₹40 crore MobiKwik fraud is a stark reminder of the vulnerabilities in India’s rapidly expanding digital payments ecosystem. While police have acted swiftly with arrests and account freezes, the case underscores the urgent need for robust cybersecurity measures and regular audits to protect consumers and companies alike.