Radiant Cash Management Services Reports ₹3.13 Crore Fraud at Fintech Subsidiary
Radiant Cash Management Services has disclosed unauthorized transactions worth ₹3.13 crore at its fintech subsidiary Aceware Fintech Services, occurring from July 2025 to February 2026. The fraud involved a former employee and external parties who misused system access credentials to manipulate Business Correspondent accounts. The company has implemented immediate containment measures, engaged forensic investigators, reported to authorities, and enhanced security infrastructure to prevent future incidents.
*this image is generated using AI for illustrative purposes only.
Radiant Cash Management Services Limited has disclosed significant irregularities at its fintech subsidiary involving unauthorized transactions worth ₹3.13 crore. The company informed stock exchanges on April 15, 2026, about fraudulent activities discovered at Aceware Fintech Services Private Limited (RadiantAcemoney), which operates in the fintech sector with a significant merchant and Business Correspondent network.
Fraud Detection and Investigation
The irregularities were identified during routine operational monitoring when unusual debit activity was detected in certain vendor accounts used for facilitating Domestic Money Transfer transactions. Upon discovery, RadiantAcemoney immediately suspended the affected functionalities and initiated a comprehensive internal review alongside a forensic audit by an external digital forensic investigation agency.
The investigation revealed that unauthorized activities were carried out through misuse of residual system access credentials by a former employee, working in collusion with external parties. The perpetrators increased dashboard balances of Business Correspondent Agent accounts and executed transactions through unauthorized access to RadiantAcemoney's software system.
Financial Impact and Timeline
| Parameter: | Details |
|---|---|
| Estimated Financial Exposure: | ₹3.13 crore |
| Period of Occurrence: | July 2025 to February 2026 |
| Scope: | Limited number of BC Agent accounts |
| Impact on Parent Company: | Not material at consolidated level |
The forensic report confirmed no involvement of any existing employees of the subsidiary. The unauthorized activity was confined to a limited number of Business Correspondent Agent accounts within the subsidiary's platform.
Immediate Response Measures
RadiantAcemoney has implemented comprehensive corrective actions following the discovery:
- Containment measures: Immediate suspension of affected functionalities and system restrictions
- Investigation framework: Constitution of internal investigation committee and engagement of independent forensic specialists
- Regulatory compliance: Intimation to statutory auditors and filing complaints with law enforcement and cybercrime authorities
- Governance oversight: Investigation and forensic audit reports reviewed by subsidiary's Audit Committee and Board, and subsequently by the parent company's Audit Committee
Enhanced Security Infrastructure
The subsidiary has initiated a comprehensive program to strengthen internal controls and technology infrastructure. The enhanced security measures include:
- Implementation of enhanced access control protocols and Role-Based Access Control systems
- Mandatory access revocation protocols upon employee separation
- Upgraded cyber security systems and infrastructure
- Improved transaction monitoring with automated alert mechanisms
- Reinforced reconciliation processes and dormant account controls
Radiant Cash Management Services is providing full support to the subsidiary in implementing these preventive measures to avoid recurrence of similar incidents.
Regulatory Compliance
The disclosure was made pursuant to Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, and the SEBI Master Circular dated January 30, 2026. The company has also uploaded this disclosure on its website in compliance with Regulation 46(2) of the SEBI Listing Regulations, ensuring full transparency with stakeholders and regulatory authorities.
Historical Stock Returns for Radiant Cash Management Services
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -3.29% | -0.39% | +13.48% | -27.11% | -39.60% | -61.09% |
How might this security breach impact Radiant's ability to expand its fintech operations and attract new Business Correspondent partners?
What potential regulatory actions or increased compliance requirements could SEBI impose on Radiant following this incident?
Will this fraud case lead to industry-wide changes in access control standards for fintech companies operating Business Correspondent networks?
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