Shares of One MobiKwik Systems Ltd are trading flat after hitting a day’s high of Rs 305.95 on 18th September, following reports that the company fell victim to a major security breach, resulting in an estimated Rs 40 crore being siphoned off over two days earlier this month.

MobiKwik faced a major fraud on 11th and 12th September after a software update created a vulnerability in its systems. This allowed users to make transactions exceeding their wallet balances and, in some cases, bypass authentication by entering incorrect UPI PINs. Over five lakh fraudulent transfers occurred, with funds distributed across at least 2,500 bank accounts.

The breach was discovered on 13th September during a routine audit, prompting MobiKwik to file a police complaint. So far, six people have been arrested, with nearly Rs 9 lakh recovered from their accounts. Authorities have frozen Rs 8 crore, and the company has recovered about Rs 14 crore, leaving a net loss of around Rs 26 crore. Police suspect insider involvement due to the scale and sophistication of the fraud.

This is not MobiKwik’s first such incident; in 2017, the company was defrauded of around Rs 19 crore through similar methods.

The company is working closely with banks and law enforcement to track and recover the remaining funds. Authorities have also asked the public to report any unexplained cash transfers on the 11th or 12th of September. The case is being investigated under charges of cheating and dishonest misappropriation of property.

At 1:42 PM, the shares of MobiKwik were trading 0.41% higher at Rs 299.43 on NSE.

Tired of missing hot stocks? Unicorn Signals provides powerful tools like stock scans and more help you make informed trading decisions. Download now and take control of your portfolio!