6 Steps to Secure Your Demat App Account In just a few clicks, you may easily transfer shares, bonds, mutual funds, equity traded funds, and other financial instruments using a demat account. It is also known as a "dematerialised account." However, there are some hazards associated with the ease of an electronic account. Incidents of fraud have surged in recent years, especially as more and more novice investors enter the market. Let’s look at some useful ways to secure your demat account.
Ways to Protect Your Demat Account It is possible to significantly lower the risk of fraud on a demat app by following a few steps. Here are the best ones. 1. Safeguard your login information: Your demat account password serves as your primary protection against unauthorised access. Thus, it is crucial to choose a strong one. By making it more difficult for hackers to crack your password, a strong password can help safeguard your investments against fraud or theft. 2. Monitor your account statements: Make sure your email and phone number are up to current at all times. Also, go through all of the statements and SMS that the depository sends you. All the transactions in your demat account should match your trading activity, and you should notify the depository of any irregularities. 3. Safeguard the Debit Instructions: Slips usually get out of sight. Giving your broker debit instruction papers for offline transactions is never a good idea. 4. Track Your Broker’s Actions: Verify that the Power of Attorney has a restricted scope and that your depository participant (broker) is not engaged in proprietary trading. By doing this, you will reduce the chance that your broker may commit demat account fraud against you. 5. Freeze the Demat account: Freeze your demat account if you are going to be away from home for an extended period or are going overseas. You can do it online. All brokers offer the facility to freeze demat accounts. You can provide your depository participant (DP) with a signed directive to freeze the demat account. The freeze will be in place until you unfreeze your account to allow debit transactions.
Conclusion Fraud involving demat accounts would occur in one way or another. With most electronic accounts, it is unavoidable. However, by taking these easy precautions, you may significantly lower your risk of falling victim to a demat account fraud. Although demat accounts are often