A Cyber Scam of INR 14.26 Crore Perpetrated Against Sachin Bansal's Navi Technologies
According to reports, Navi Technologies, a financial unicorn led by Sachin Bansal, was robbed of INR 14.26 Cr last month. A media report stated that on January 18, Bengaluru's Whitefield Cyber Crime Police filed a charge against the unnamed scammers and began an investigation. According to the investigation, fraudsters pretended to be clients and used a flaw in Navi's technological system to allegedly complete the scam. In his complaint, Srinivas Gowda, the company's vigilance officer, said that the fintech platform gave users the choice to pay for EMIs, mobile recharges, and other services through a third-party application provider (TPAP) between December 10 and December 24.
Modus Operandi
A flaw in the payment procedure made it possible for some criminals to defraud the business. The TPAP gateway offered a mechanism to change the amount due after a consumer made a payment using the Navi app. Naturally, this shouldn't have been permitted once the payment procedure had begun. By inputting the desired amount (for instance, INR 500 or INR 1,000) on the Navi app and completing the payment process, scammers took advantage of this vulnerability. However, they went to the TPAP gateway and changed the due amount to INR 1 after the payment was processed. Navi Technologies was billed the entire amount that the user had initially chosen, but the system mistakenly reported the transaction as successful for the modified amount (INR 1). This loophole was used by scammers to defraud Navi of INR 14.26 crore.
Navi Group Already Under RBI’s Scanner
It is important to remember that the Reserve Bank of India (RBI) recently became aware of the Navi Group's violations of various regulations. Because of supervisory concerns, the central bank prohibited Navi Finserv from approving and disbursing loans in October 2024. Excessive interest rates, noncompliance with its rules, and pricing practices that went against the central bank's directives prompted the RBI to launch its crackdown. Navi Finserv eventually reduced the maximum interest rate on unsecured personal loans from approximately 35% to 26% and implemented additional corrective actions. The RBI then gave Navi permission to start up again in December.
No Work-From-Home Culture
Within months of leaving Flipkart, Sachin Bansal established Navi in 2018. He disclosed in April of last year that although he puts in 80 to 100 hours a week, he does not expect others to follow suit. Additionally, he stated that his startup did not permit remote work.
The corporation makes it very apparent that it prefers its workers to work from home. The brand offers a temporary opportunity to work from home. It was never going to be permanent. The company is focusing entirely on working from the office. Bansal noted that there was no work-from-home option available now.
Nitin Konde
