Demat accounts are essential for those who invest in the stock market. It is a digital account that holds your shares and other securities electronically. With the increase in digitalization, there has been a rise in the number of fraud cases related to demat accounts. Fraudsters are constantly devising new ways to scam people and steal their money. Hence, it is important to be aware of the ways to protect your demat account from fraud.
Keep Your Account Details Safe
The first step to protecting your demat account is to keep your account details safe. This includes your login credentials, account number, and other personal information. Do not share your account details with anyone, even if they claim to be from your bank or brokerage firm. Remember, your bank or brokerage firm will never ask for your account details over the phone or email.
Enable Two-Factor Authentication
Two-factor authentication is an extra layer of security that requires you to enter a code sent to your registered mobile number or email address, in addition to your login credentials. This helps to prevent unauthorized access to your account, even if someone has your login credentials. Make sure to enable two-factor authentication for your demat account.
Regularly Check Your Account Statements
It is important to regularly check your demat account statements for any discrepancies or unauthorized transactions. If you notice any such transactions, immediately inform your bank or brokerage firm. Also, make sure to change your login credentials if you suspect any unauthorized access to your account.
Use Strong Passwords
A strong password is essential for protecting your demat account from fraud. Make sure to use a combination of upper and lowercase letters, numbers, and special characters in your password. Avoid using easily guessable passwords such as your date of birth, name, or phone number.
Be Wary of Phishing Emails and Calls
Phishing emails and calls are a common way for fraudsters to steal your account details. These emails and calls may claim to be from your bank or brokerage firm and ask you to click on a link or provide your account details. Always verify the authenticity of such emails and calls before providing any information. Remember, your bank or brokerage firm will never ask for your account details over the phone or email.
Use Secure Networks
When accessing your demat account, make sure to use a secure network. Avoid using public Wi-Fi or unsecured networks, as they are more susceptible to hacking and other cyber-attacks.