Capillary Technologies Gets KPMG Report on EUR 3.04 Million Fraud

Capillary Technologies said on 31 October 2026 that it has received the final forensic audit report from KPMG on a payment fraud that hit its subsidiary Session M Czech Republic s.r.o. The report found that four disputed payments, worth about EUR 3.04 million in total, were most consistent with a payment-diversion fraud in which outsiders impersonated a senior executive and an external lawyer.

The company said the findings do not point to a technical break-in at its systems. KPMG found no evidence of malware, mailbox compromise or any involvement by employees, and it could neither confirm nor rule out the use of deepfake audio or video.

Capillary Technologies fraud report at a glance

How the four payments were diverted

According to the findings reported on 31 October, the fraudsters impersonated a senior executive and an external lawyer. They likely used a lookalike email domain and moved the conversation to channels outside the company's official systems, including WhatsApp and personal email.

Three of the four payments went to accounts of ZZDJB Co Limited at HSBC in Hong Kong. The fourth went to an account of Zhongxian Trading Pte. Ltd at UOB in Singapore. The company said the audit did not trace the funds beyond those accounts, did not identify who ended up with them and did not establish the recovery position.

What KPMG ruled out and what it could not confirm

KPMG found no evidence of malware, endpoint compromise, mailbox or account compromise, or traditional email spoofing. It also found no evidence that employees were involved.

The audit could neither confirm nor rule out deepfake audio or video, because the original recordings and related evidence were not available to the auditors.

Capillary Technologies: from the July incident to the October report

In its July disclosures, Capillary said the loss was about EUR 3 million, roughly Rs 32.7 crore, at a recently acquired step-down subsidiary overseas. The company said about EUR 450,000, or about Rs 4.9 crore, was recovered after the fraud was detected, and that the subsidiary holds a cyber and crime insurance policy. The company's Audit Committee approved the forensic audit.

What Capillary says it has done since the fraud

Capillary said it has strengthened its payment controls and is pursuing recovery and legal remedies. It described the matter as payment-diversion fraud driven mainly by social engineering and impersonation, and said the findings do not point to a technical compromise of its endpoints or accounts.

Where Capillary Technologies stands after the KPMG report

The KPMG report puts the amount in dispute at about EUR 3.04 million across four payments made over one week in late June and early July. Capillary has said it received the final report on 30 October, disclosed it the next day and is pursuing recovery of the money and legal remedies.

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