Rajveer Sekhawat 
In another startling news, the digital payments service provider MobiKwik has become a victim of an enormous ₹40 crore fraud, as a bug in its system was used to defraud the service user by fraudsters.
How the Glitch Was Exploited
In September 112025, the app allegedly enabled UPI payments to complete without adequate funds or appropriate PIN authentication after a technical issue in the app. In this loophole, fraudsters made more than 5 lakh transactions within 48 hours taking away crores of money in the accounts of the company.
The government has already achieved progress in investigation. These have resulted so far in six people being arrested and more than 2,500 bank accounts associated with the fraud being frozen. Police have been able to recover close to ₹8 crore and are still trying to recover the rest.
Historical Events and Industry Lessons.
This is not the initial blowback to the fintech company. An internal banking fraud of 1.26 crore was also reported by MobiKwik earlier this year, and it was reportedly organized by a former employee who had compromised merchant accounts within several months.
Although the events point to the shortcomings in the fintech practices, analysts emphasize that it was MobiKwik that was exploited instead of being the creator of the scheme. The company is also said to have increased security and is fully cooperating with the authorities.
As the world of digital transactions continues to take over India, this case is one of several reasons why more rigorous security measures are necessary, measures to detect the fraud in real-time, and more stringent regulation of these transactions in order to make both companies and consumers more secure against these massive financial offenses.
What is MobiKwik?
MobiKwik is a digital payments and financial services platform that is Indian based and was founded in 2009 by Bipin Preet Singh and Upasana Taku. It is based in Gurugram, Haryana, and started as a simple mobile recharge and wallet application and has since become one of the most successful Fintech companies in India.
What is suspected, not quite confirmed or even being investigated.
- The total loss is a little unclear. It is being reported that there were ₹40 crore (40.2 crore) alleged but net decline after recoveries could be 26 crore as some company spokespersons said.
- The place of insiders or employees of a company, as part of the complicity or assistance, is under investigation.
- The mechanism behind the production of the glitch (which software update, which module, how PIN check / balance check was bypassed) is not publicly described in all its aspects. Read more
