News · Enterprise Software & IT

Capillary loses €3 Mn in deepfake fraud

By Startup Enthusiast · 31 July 2026

What they do

Capillary Technologies runs a customer loyalty and engagement platform for brands

A step-down subsidiary lost €3 Mn (≈₹32.7 Cr) in a deepfake fraud; €450K recovered

The fraud used AI to clone voices and forge signatures, impersonating senior management

Capillary Technologies suffered a cyber fraud of €3 Mn (≈₹32.7 Cr) at a recently acquired step-down subsidiary.
The fraud used advanced deepfake techniques including voice cloning, signature forging, and social engineering.
Attackers impersonated senior management to carry out the fraud just before July 3, 2026.
Capillary initiated a forensic audit by KPMG Assurance and Consulting Services LLP, approved by the Audit Committee.
The company has recovered €450K and traced bank accounts; some accounts were placed on hold by banks.
Capillary believes customer data and technology infrastructure remain uncompromised.
The company is working with law enforcement, cybercrime authorities, and concerned banks.
The affected subsidiary is insured under a cyber and crime insurance policy; Capillary is evaluating coverage and recoverability.

The incident highlights growing cybersecurity risks from advanced AI.
It follows a recent cyberattack on Tata Electronics in June 2026 that exposed Apple supply chain data.
Capillary had acquired SessionM from MasterCard in February 2026 for $20 Mn and Kognitiv in 2025.
The company reported strong financials: FY26 net profit ₹52.4 Cr, up 296% from FY25.

Capillary Technologies provides a customer loyalty and engagement platform for brands.
It helps businesses manage loyalty programs, customer data, and personalised marketing.
The company operates globally with a presence in multiple countries.
It reported Q4 FY26 operating revenue of ₹191.3 Cr, up 25% YoY.
FY26 operating revenue was ₹734.6 Cr, up 23% from ₹598.3 Cr in FY25.
The company posted a net profit of ₹52.4 Cr in FY26, up 296% from ₹13.3 Cr in FY25.
Its share price was ₹515.85, up 0.15% on the day of the article.

Capillary is working with law enforcement and cybercrime authorities to investigate the fraud.
The company is evaluating insurance coverage and recoverability under its cyber and crime insurance policy.