Digital payments firm One MobiKwik Systems revealed that between September 11–12, 2025, some registered merchants and users from select areas in Haryana colluded to claim unauthorized settlements worth ₹40.22 crore.
A technical glitch in the MobiKwik app caused transactions that had failed, or had wrong passwords, to be marked successfully in favor of merchants. Even when user or wallet balance was insufficient, payments were being credited.
Detection, Arrests & Recovery
- Arrests: Gurugram Police arrested six individuals from Nuh and Palwal districts.
- Accounts frozen: About 2,500 bank accounts have been frozen, with ₹8 crore frozen in them.
- Recovery so far: The company has recovered around ₹14 crore, leaving a net exposure of approximately ₹26 crore.
Company’s Statement & Market Reaction
- MobiKwik clarified that no employees, key managerial personnel or insiders have been found involved so far.
- The company has lodged an FIR with Gurugram police; legal enforcement has put lien marks/debit freezings where unauthorized funds were credited.
- Shares of MobiKwik dropped by about 3% in trading after the news broke. Business Standard
Implications & Key Risks
- Tech reliability: The glitch that allowed failed or wrong-password transactions to succeed raises questions about app robustness, audit controls, and risk of similar issues in future.
- Trust & reputation: For a fintech company, trust is central. Incidents of this scale can hurt user confidence, especially among merchants and users who depend on secure settlements.
- Financial impact: While ₹26 crore is the net exposure now, full recovery is still ongoing. Such losses strain balance sheets, especially given existing losses or thin margins.
- Regulatory & compliance oversight: Authorities may demand enhanced compliance, stricter audits, and better system checks. This might lead to more scrutiny of fintech players.
Outlook
MobiKwik is likely to:
- Ramp up system audits and security checks to prevent recurrence.
- Increase customer communication, especially those whose accounts may have been credited erroneously.
- Work with law enforcement to recover the remainder of the funds.
- Possibly revise or enhance their insurance, risk mitigation, or merchant/user verification to counter collusion or technical exploitation.
MobiKwik’s ₹40 crore fraud in Haryana is a reminder that even established fintechs can be vulnerable to technology glitches and collusion. The impact is material, but the swift recovery, arrests, and company response give some hope that damages can be contained — though restoring full trust will take effort
