Hyderabad fintech firm loses ₹1.3crore in cyber fraud

HYDERABAD: A city-based fintech company has reported a loss of ₹1.3crore after its servers were allegedly hacked and used for fraudulent financial transactions.

Gadde Chandrasekhar, 42, chief executive officer of Flexypay Solutions Private Limited, lodged a complaint on September 22, 2025. The firm, which operates software applications for bill, rental and education payments, is headquartered at 91Springboard, Hitech City.

Fraud detected in audit

According to the complaint, the company discovered unauthorised debits of ₹1,39,95,215 during an internal audit of transactions on September 15. A subsequent technical probe revealed that unidentified persons had gained illegal access to the company’s server and executed multiple unauthorised fund transfers.

Investigators found that the hackers had studied the system’s operations before exploiting it. They sent repeated Application Programming Interface (API) requests to the firm’s partner bank, Yes Bank Ltd, Kasturba Road branch, Bengaluru. Funds were routed to multiple accounts after requests were processed through whitelisted Internet Protocol (IP) addresses.

Hackers exploited server to send fraudulent bank requests

The database was not breached but the server infrastructure was misused, the complaint stated. Flexypay’s API partner Juspay supported the probe and furnished logs of suspicious IP addresses. Requests from two IP's were rejected as unlisted, but transactions sent from the whitelisted IP were processed as legitimate.

Offences under IT Act, BNS

Chandrasekhar sought registration of a First Information Report against unknown offenders for hacking, unauthorised access, cyber fraud, cheating, criminal breach of trust, identity theft and conspiracy under the Information Technology Act, 2002 and the Bharatiya Nyaya Sanhita, 2023.

The complaint requested action against suspect users of the flagged IP addresses and beneficiaries of the fraudulent transfers. Flexypay assured full cooperation with investigators and promised to provide documents, technical reports and witness statements.

Police said they are examining the complaint and verifying the evidence submitted.