MobiKwik App Glitch Leads to Rs 40 Crore Fraud: Six Arrested

Authorities have arrested six individuals accused of orchestrating a large-scale fraud involving over Rs 40 crore, facilitated by a glitch in MobiKwik's mobile application. The scam exploited a technical fault that mistakenly recorded failed transactions as successful, allowing funds to be transferred improperly.

In response to a complaint from One MobiKwik Systems Limited, the Gurugram police launched an investigation, freezing 2,500 bank accounts with a collective worth of Rs 8 crore. The fraudulent activities were discovered when unusual transactions were detected on September 12, involving both registered merchants and unknown individuals.

The accused, identified as residents of various villages in the Nuh and Palwal districts, were apprehended after the breach was reported to the authorities. They are accused of conducting fraudulent transactions even without sufficient account balances or correct passwords, exploiting the app's technical issue for illicit financial gain.

(With inputs from agencies.)