How to Protect Your Demat Account From Cybercrime?

The headlines say that “an unknown co-conspirator emptied the Demat accounts of innocent victims, taking hundreds of thousands of rupees,” which is a typical situation that occurs virtually daily. However, don’t fret; we will help you answer “How to Protect Your Demat Account?”

India today ranks second only to China in terms of active internet users, with more than 690 million, or almost 41% of our country’s entire population. But as these figures increase and society develops, cyber fraud also increases. Despite being as ancient as the internet, it is a growing industry.

Fifty thousand two hundred forty-two cybercrimes were recorded in India in 2021, according to NCRB data, resulting in a startling loss of Rs 167.03 million. Every day it simply keeps climbing. 

How can you combat increasingly sophisticated fraud while remaining up to date with cybersecurity trends? Even though they constantly evolve, the most excellent strategies to secure your accounts fundamentally boil down to exercising common sense and a healthy dose of skepticism while communicating with individuals online. 

Here are ten tips for preventing online fraud while keeping the best demat account in India.

Top 10 Tips For Protecting Your Demat Account From Fraud

1. Give It Some Thought Before You Hit That “Click”

More than 3 billion emails posing as from recognized senders are sent every day, according to Valimail. With only one click, you risk losing money, stealing your identity, or installing malware on your computer.

Too many individuals fall for these so-called phishing scams, which effectively deceive them into divulging critical information such as passwords and account numbers. Avoid responding to unsolicited emails by avoiding clicking on links or downloading attachments.

2.Increase Your Level Of Safety

Don’t let your passwords get out! Remembering them is preferable to writing them down or keeping any other kind of record. It’s also an excellent idea to switch up your password often.

A unique password for each Demat account must be kept secure. Remind yourself to change your essential passwords every month. Choose a strong password as opposed to a weak and evident one. 

Financial organizations have developed strong cybercrime protections. Important ones include:

  • Email or text message security: Warnings about specific transactions, password changes, and other important events.
  • Two-factor authentication: The user must input a random number sent to their phone or email. Taking that additional precaution might be crucial in keeping your accounts secure.
  • Voice identification: This lets you log in safely by saying something like, “My voice is my password.”

3.Make Secure Password Choices

Even though it’s common knowledge that passwords should be more complex than “1234” or your birthdate, it’s still a good idea to take these precautions.

Today, our mobile devices are the most critical place where we keep track of private information. Password managers can generate, store, and even autofill complex passwords for an unlimited number of different websites. 

Irrespective of whether or not you use a password manager, you should always use a strong password on your laptop, phone, and tablet. 

4.Document Everything

Please ensure that the depository always has the most up-to-date contact information and that you carefully read any statements and SMS messages. If there are any discrepancies between your trading activity and the transactions in your Demat account, you must contact the depository immediately.

5.Protect Your Private Network

It’s essential not to take your home’s internet connection for granted. Manufacturers may discontinue supporting older routers, which transfer ISP data to devices, and newer ones have more powerful encryption settings and automatic updates.

Password-protecting your router is just as crucial as password-protecting your other smart devices, such as doorbells, speakers, thermostats, and others that connect to the internet and often have weak default passwords like “password.”

6.Don’t Log Into Free Wi-Fi

Cybercriminals may use any airport, hotel, or restaurant’s name to create a phony Wi-Fi network. Tethering your laptop or tablet to a “personal hotspot,” a feature of many cell phones, is one method to protect yourself from online scammers while in a public place. 

The only time it’s okay to use public Wi-Fi is to check your sports scores, but you should never do anything as important as banking, shopping, or entering your email account. It’s also an excellent idea to keep your Demat accounts secure and not log in from unsecured public networks.

7.Update Your Tech Often

Regular updates are available for the majority of operating systems, as well as for most programs. Security fixes are released as quickly as possible when a new vulnerability arises.

Most software and operating systems include an option to enable automatic updates. As a result, failing to do so may have severe consequences. Before giving away old equipment, delete crucial data.

8.Verifying The Brokerage

Daily, a new brokerage company opens due to the public’s growing interest in stock trading. However, before selecting a company, it is essential to undertake extensive research about its background, performance record, reputation, and market credibility.

It is also essential to ensure your broker is not doing proprietary trading. If the corporation does proprietary trading, you may want to avoid having a Demat account opened on your behalf because of the potential for a dispute. Brokerage inspections prevent Demat fraud.

9.Always Keep Yourself Updated

Please enroll yourself in the newest stockbroker scam warnings from the best stock broker in India. Additionally, it would help to look over your credit report once a year to search for any indications of fraudulent activity.

If you get inaccurate or fraudulent information in your credit report, you may dispute it with the credit reporting agency that provided you with the report. It’s also a good idea to “freeze” your credit, which means no one can start any new accounts in your name that need a credit check without your approval.

10.Go With Your Gut

Always listen to your instincts or the six senses! Besides the adage “ If a deal exists too good to be true, there’s a strong chance that it is a scam,” it always holds. Another red flag is that no legitimate company would ever contact you by email asking for your PAN card, account number, or other highly personal information.

In our opinion, you should do all your power to stop fraud, but you should also be prepared to soften its blow. Remember to keep your guard up lest those who would do you harm take advantage of all this newfangled access and technology.

The Final Word

You likely know someone who has fallen victim to a con artist’s sales presentation for a fraudulent investment opportunity. Following the famed Willie Sutton principle, fraudsters often go “where the money is,” which, in the case of India, means preying on retirees and the elderly.

Those with a four-year degree, a positive outlook, and a strong sense of independence are prime targets for scammers in the financial sector. People with better earnings and financial literacy, as well as those who have recently experienced a change in health or economic status, are particularly prime targets.