Fintech firm MobiKwik freezes 2,000 merchant accounts after ₹40 cr loss

MobiKwik froze 2,000 merchant accounts after a technical error caused unauthorised settlements worth Rs 40 crore, with Rs 14 crore recovered and FIRs filed in Haryana

Fintech firm MobiKwik froze the accounts of 2,000 merchants after unauthorised payment settlements amounting to Rs 40 crore were detected on the platform last week due to a technical issue.

 

The Gurugram-based company clarified that this was not a cybersecurity breach but a “limited internal processing error”.

 

It added that no banks or financial institutions were impacted by the issue, as it was confined to its platform.

 

“MobiKwik confirms that an isolated technical issue on 11–12 September 2025 led to certain failed transactions being incorrectly marked as successful, resulting in unauthorised payouts to some merchants in and around Nuh district of Haryana. A few merchants and users from this area exploited this issue to gain undue financial benefit,” the company said in a statement.

 

The company further stated that the incident did not affect Unified Payments Interface (UPI) or wallet transactions, user account balances, and that customer data was not compromised.

 

“An FIR has been filed with local authorities, arrests have been made, and over 2,000 merchant bank accounts have been frozen. Active recovery efforts are ongoing, and a portion of the funds has been recovered,” it said in a statement on Thursday.

 

Of the Rs 40 crore loss caused by the technical error, the company has recovered about Rs 14 crore. At present, the net impact stands at around Rs 26 crore.

 

In an exchange disclosure released this week, the company stated that the law enforcement agency (LEA) had put debit-freeze and lien marks on all bank accounts where unauthorised settlements were credited.

 

“MobiKwik has strengthened its monitoring systems and implemented additional control measures,” the company added.