News · Enterprise Software & IT

Capillary subsidiary loses EUR 3m to deepfake fraud

What they do

Capillary Technologies provides customer loyalty and engagement platforms for businesses

Its overseas step-down subsidiary lost EUR 3m (~Rs 32.7cr) to cyber banking fraud using deepfake voice cloning and forged signatures

The company recovered EUR 0.45m immediately and has frozen other traced funds while coordinating with law enforcement

Capillary Technologies' overseas step-down subsidiary was targeted by a sophisticated cyber banking fraud.
Attackers used advanced deepfake techniques including voice cloning and forged signatures to impersonate key managerial personnel.
Approximately EUR 3m (~Rs 32.7cr) was transferred to unauthorized third-party accounts during the incident.
The company managed to recover EUR 0.45m (~Rs 4.9cr) immediately upon discovering the breach.
Additional funds were traced and corresponding bank accounts have been frozen by authorities.
Legal and operational measures have been initiated to facilitate further fund recovery efforts.
The company is coordinating closely with law enforcement, cybercrime authorities, and relevant banks.
The insurer has been notified under the company's existing cyber and crime insurance policy.

This incident highlights the growing threat of AI-driven social engineering attacks against corporate entities.
The use of deepfake technology to bypass traditional verification methods poses significant risks to financial security.
The delay in disclosure was due to prioritizing immediate fund security and coordination with authorities over weekend timing.

Capillary Technologies operates as a customer loyalty and engagement platform provider.
The company is based in Bengaluru, India.
It helps businesses manage customer relationships through digital engagement tools.
Business operations continue without material disruption following the security incident.
There is no evidence that customer or employee data was compromised.
The company's technology infrastructure remains secure and unaffected by the fraud.
Annual and long-term business goals remain unchanged despite the financial loss.
The core loyalty platform services are functioning normally for clients.