A Mobikwik UPI scam has led to a loss of ₹40 crore in over 5 lakh transactions for the company. On September 11 and 12, 2025, a glitch in its payments system accidentally turned off important security checks. Because of this, users were able to send money without enough balance in their wallets or even after entering the wrong UPI PINs.
The issue was discovered during an internal audit by MobiKwik. The company immediately informed the police, who started tracking down the people involved. So far, six men from Nuh and Palwal districts in Haryana have been arrested. Their bank accounts held about ₹9 lakh of the stolen money.
Police believe that more people are involved. They are also looking into whether MobiKwik employees helped the scammers by leaking internal information.
So far, ₹14 crore has been recovered, and ₹8 crore more has been frozen in various bank accounts. Police have identified about 2,500 people who received money during the scam.
The arrested individuals have been sent to judicial custody. Police say more arrests may happen soon.
MobiKwik is now working with banks and the police to trace the rest of the stolen money. The company has said it is taking legal action and continuing aggressive recovery efforts.
This is not the first time MobiKwik has faced such an issue. Back in 2017, the company was also hit by a similar scam where ₹19 crore was lost through fake transfers.
The Nuh Police have asked residents of Nuh, Palwal, and Mewat districts to report any unexplained money received in their MobiKwik wallets during those two days. People have been asked to contact the Superintendent of Police’s office by September 23.
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This incident has raised serious questions about digital payment security and how companies handle software updates. While a large part of the money has been recovered, the damage to trust may take longer to fix. MobiKwik, now dealing with its second major breach, must tighten its systems to prevent such events from happening again.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Published on: Sep 17, 2025, 9:20 AM IST
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