Capillary Technologies India Ltd, a Bengaluru-based software-as-a-service (SaaS) company, has reported a major cyber-enabled banking fraud at one of its recently acquired overseas step-down subsidiaries. The company said cybercriminals used advanced artificial intelligence (AI) tools to trick employees into transferring nearly €3 million (around ₹32.7 crore) to unauthorised bank accounts.
Capillary clarified that the fraud did not target the parent company directly. It was limited to an overseas subsidiary that became part of the company through a recent acquisition. The company also confirmed that no customer data, employee information, or core technology systems were affected during the incident.
The company has already recovered part of the stolen money and is continuing its efforts to recover the remaining amount with the help of banks, law enforcement agencies, and cybercrime authorities.
Fraudsters Used Deepfake and Voice Cloning to Fool Employees
According to Capillary Technologies, the cybercriminals carried out a highly planned banking fraud using AI-based tools such as deepfakes, voice cloning, fake signatures, and social engineering techniques. These methods helped the attackers pretend to be senior executives and Key Managerial Personnel (KMPs) of the company.
Employees who received these fake instructions believed they were genuine and approved large fund transfers to third-party bank accounts controlled by the fraudsters.
The fraudulent transactions took place just before the weekend, giving the attackers extra time before the company noticed the suspicious activity.
The incident shows how cybercriminals are using AI to make online financial fraud more convincing. With technologies like voice cloning and deepfake videos becoming more advanced, it is becoming harder for employees to identify fake requests from real ones. Experts have been warning businesses to strengthen their approval processes and use multiple verification steps before transferring large amounts of money.
Capillary said the fraud happened during a period when the company was expanding its global business through acquisitions. However, it stressed that the attack was only a banking fraud and did not involve any hacking of its technology systems or customer platforms.
Company Recovers Part of the Money and Starts Insurance Claim
After discovering the fraud, Capillary Technologies immediately began working with banks and investigating authorities to stop further losses. Instead of announcing the incident immediately, the company first focused on freezing suspicious bank accounts and trying to recover the stolen funds.
So far, Capillary has recovered around €0.45 million, which is approximately ₹4.5 crore to ₹4.9 crore. The company also said it has identified more suspected funds and successfully frozen several unauthorised bank accounts linked to the fraud. The total amount held in these frozen accounts is still being calculated.
Capillary is working closely with local police, cybercrime authorities, and banking partners as the investigation continues. The company hopes that these efforts will help recover more of the stolen money.
The affected overseas subsidiary is also covered under a cyber and crime insurance policy. Capillary has already informed the insurance company and filed a claim. The final financial impact will depend on how much money is recovered through the investigation and how much is paid under the insurance policy.
No Data Breach, Business Operations Continue Without Disruption
Although the company suffered a significant financial loss, Capillary Technologies said the incident did not affect its customers or its business operations. It confirmed that no customer data, employee records, or company technology infrastructure were breached or compromised.
The company said its services are running normally and the cyber fraud will not change its annual business plans or long-term growth strategy.
Capillary informed the stock exchanges about the incident on July 6, 2026. Some questions were raised about why the disclosure came a few days after the fraud took place. Explaining the delay, the company said its first priority was to work with banks and investigating agencies to freeze suspicious accounts and improve the chances of recovering the stolen money before making the matter public.
The incident highlights the growing threat of AI-powered financial fraud across businesses worldwide. As deepfake technology, voice cloning, and other AI tools become more advanced, companies are expected to strengthen their internal controls and verification processes. Experts believe that employee awareness, strict approval procedures, and stronger cybersecurity measures will play an important role in preventing similar frauds in the future.