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Scammers posed as customers and exploited a bug in Navi’s tech system to allegedly carry out the fraud
The bug allowed scammers to edit the payable amount via a TPAP, even after completing the payment process
Meanwhile, local law enforcement authorities have now sought more details of these financial transactions from the company and have initiated a probe in the matter
Sachin Bansal-led fintech unicorn Navi Technologies was reportedly defrauded of INR 14.26 Cr last month.
As per The Hindu, Bengaluru’s Whitefield Cyber Crime Police registered a case against the unidentified fraudsters on Saturday (January 18) and a probe has been launched into the matter.
The report noted that scammers posed as customers and exploited a bug in Navi’s tech system to allegedly carry out the fraud.
A vigilance officer at the company, Srinivas Gowda, in his complaint, said that the fintech platform provided an option for customers to make payments for mobile recharge, EMIs, and other services via a third-party application provider (TPAP) between December 10 and December 24.
However, the bug in the system allowed scammers to edit the payable amount after initiating the payment process. Misusing this, the fraudsters accessed the TPAP gateway, even after the payment was processed, and reduced the payable amount to INR 1.
As a result, while Navi’s system incorrectly marked the transaction as successful for INR 1, the company was charged the original full amount. In total, the fintech unicorn was cheated of INR 14.26 Cr through this “modus operandi”.
Meanwhile, local law enforcement authorities have now sought more details of these financial transactions from the company.
Founded in 2012 by Flipkart cofounder Bansal and Ankit Agarwal, Navi focuses on lending products such as personal, vehicle, and home loans. It also operates a non banking financial services company, Navi Finserv, which offers digital lending products for personal and housing finance.
It is pertinent to note that the Navi Group recently came under the radar of the Reserve Bank of India (RBI) for flouting certain norms. In October 2024, the central bank barred Navi Finserv from sanctioning and disbursing loans due to supervisory concerns.
The RBI’s crackdown action came in response to excessive interest rates and non-compliance with its regulations and for pricing policies that violated the central bank’s guidelines.
Eventually, Navi Finserv brought down the maximum interest rate on unsecured personal loans to 26% from around 35% in the past and took other corrective measures. Thereafter in December, the RBI allowed Navi to resume operations.
