Capillary Technologies loses over Rs 32 Cr in deepfake…

Capillary Technologies, a customer loyalty and engagement platform, recently disclosed that an overseas step-down subsidiary was targeted by a sophisticated cyber-enabled banking fraud. The incident resulted in the unauthorized transfer of approximately EUR 3 million, or Rs 32.7 crore, to third-party bank accounts.

What happened

The fraud, which occurred just before the weekend, utilized advanced deepfake techniques to impersonate the company's key managerial personnel. The attackers combined voice cloning, forged signatures, and social engineering to gain authorization for the illicit transfers.

Upon discovering the fraud, the Bengaluru-based company took immediate action, resulting in the recovery of EUR 0.45 million (approximately Rs 4.9 crore). Furthermore, the company has traced additional funds and successfully frozen the associated bank accounts, though the total amount currently on hold remains to be determined.

In response to the incident, Capillary Technologies has engaged with law enforcement agencies, cybercrime authorities, and banking institutions to attempt full recovery. The affected subsidiary is covered by a cyber and crime insurance policy, and the company is currently working with the insurer to assess the extent of the coverage and the final financial impact.

Capillary has confirmed that there is no evidence of a compromise regarding customer data, employee data, or the company's core technology infrastructure. Business operations remain unaffected, and the company stated that the incident does not necessitate changes to its annual or long-term business goals. The delay in the formal stock exchange filing was attributed to the company prioritizing the security of funds and coordination with investigating authorities.