How to Detect and Respond to Unauthorized Activities on Demat Account

Introduction

The journey into the stock market cannot start without an investor or trader having a Demat account. With the rise in stock market trading in recent times, Demat accounts have become the new way to invest in the stock market. However, with the growth of the demand for Demat accounts, the chances of them falling prey to fraudulent or unauthorized access have also increased.

Despite the safety nets that most stockbrokers offer with their Demat accounts or when you access their open trading account online, the risks still exist. 

So, to make the whole security more foolproof, here’s a guide on how to detect and protect your demat account from such unauthorized access. 

The Detection

To begin with, if you suspect that your Demat account is being accessed without your authority, there are certain aspects to monitor that can confirm your suspicions. These include:

• Checking Demat Statement Regularly

Investors or traders should stay on top of their Demat statements and check them regularly. This will help them detect any transactions that they might not have carried out or authorized.

• Check Transaction History

Checking the Demat account translation history is another way they can help you detect any unauthorized payments made or received. 

• Regularly Check Registered Emails and Mobile Numbers

Any unauthorized access to your account is usually reported by your stockbroker on your registered mobile number as well as email ID. Traders must keep a check on any emails or SMS from their stockbrokers to catch such alerts on time.

The Protection 

The protection aspect is an important one if you want your Demat account to remain safe and away from unauthorized access. Here are a few steps that you can take to secure your Demat account.

• Password Protection:

The fact that a Demat account would have a password for you to log in with is obvious, but it is also important that traders pick a strong password to log in with. A strong password should ideally be a combination of lowercase and uppercase letters, numbers and symbols. It is also important that traders keep changing their passwords regularly so that it is harder for hackers to keep cracking them constantly.

• Keep the Info Private:

We know you do not intend to shout the details of your Demat account login from the rooftops. What we mean though is that sharing your login credentials with anyone could lead to potential disasters. Try not to jot down these details in notebooks or places that are easily accessible by others. 

• Update Your Contact Information:

Another important thing to remember is to keep all our contact information up-to-date. From your mobile number and email address to your postal address as well. This will help your stockbroker contact you promptly if ever there are things to be communicated.    

• Two-Factor Authentication:

Here’s an extra layer of security that, without a doubt, should be added to your account. The two-factor authentication or 2FA is a great way to dissuade hackers from accessing your Demat account. Under the 2FA, the primary login credentials and a secondary code or password are needed, which is usually sent in the form of an OTP to your mobile number or email ID. 

• Reporting Suspicious Activities:

If you suspect that someone has tried to access your account without your authority, you must inform your DP about it. This can help temporarily freeze your Demat account till the threat passes.

In Conclusion

Your Demat account is the gateway to your journey in the stock market. Without it being safe, trading in the stock market will always be a risk. This is why it is crucial to not just detect but also follow certain precautions and steps to ensure that the chances of anyone gaining access to the account do not exist.