How A 76-Year-Old Investor’s Rs 4.58 Crore Share Portfolio Was Targeted In A Demat Fraud

Demat account fraud can expose investors to the risk of losing control over their shareholdings if criminals gain access to their trading credentials. In a Mumbai case, a 76-year-old businessman discovered that shares in his portfolio had been sold and replaced with penny stocks without his consent.

According to a Hindustan Times report, shares worth Rs 4.58 crore were sold from the businessman’s demat account. Police arrested a 33-year-old woman, identified as Pushpa Bind, who worked at a share trading firm in connection with the case.

How The Demat Account Was Accessed

Police said Bind contacted the businessman, who lives in Mumbai’s Gamdevi area, on August 10, and persuaded him to invest in certain shares, claiming they would be profitable. She allegedly obtained his demat account credentials and password.

According to the investigation, OTPs required to access the demat account were being sent to the businessman’s registered email address. Bind allegedly obtained a SIM card linked to the mobile number associated with that email account and used it to access the OTPs and carry out unauthorised transactions.

This allegedly enabled her to sell shares from the investor’s existing portfolio and replace them with penny stocks without his authorisation.

How The Fraud Came To Light And The Arrest

The businessman discovered the transactions when he checked his demat account on August 11. Deputy Commissioner of Police (Cyber) Bajrang Bansode said police managed to stop the sale of shares worth Rs 2.86 crore.

Police said Bind allegedly received a commission of 30 per cent for carrying out the transactions. She had previously been arrested by the Santacruz and Azad Maidan police in other cases, according to the report.

Officials also said she had earlier worked with well-known investment firms in Mumbai. The South Cyber police are investigating whether she had accomplices and whether others were involved in the fraud.

Investors should never share demat account credentials, passwords, or OTPs. They should secure their registered email accounts and mobile numbers, enable transaction alerts, and regularly check their holdings for unauthorised trades.