NEW DELHI: Amid reports of Zerodha‘s demat accounts getting hacked, the discount broking firm’s founder and CEO Nithin Kamath on Tuesday announced that he will soon launch a new safety tool to protect traders.

“We are soon launching a tool that disallows trades in illiquid options far away from the theoretical price plus a Kill Switch option to block orders in all penny stocks similar to F&O,” Kamath said, adding that he is trying to address the root cause of most hacking attempts.

He said that since all email hacking cases were from users who use Rediffmail, Zerodha has blocked Rediff IDs on trading accounts and they also don’t send password resets to Rediff email IDs.

“There has been some noise about the hacking incidents at Zerodha. Here is some data: Out of the ~65lk customers who traded with us last year, we have ~100 complaints of fraud. ~80 where login details were shared willingly & ~20 where email was hacked (all Rediffmail IDs),” Kamath tweeted.

He said as a percentage of such cases or even normal complaints to overall active customers, Zerodha is among the lowest in the broking industry.

“So this isn’t just about us; regardless of the broker, you need to be careful not to share your login details & use a secure email,” said the founder of India’s largest broking house.

To move money, fraudsters create artificial losses by trading illiquid options (buy high, sell low) or buying scammy penny stocks. We ask for a TOTP (temporary one-time password) when orders are placed for illiquid options; it has helped, but not enough,” Kamath had said earlier.


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By Dipak

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