How to report unauthorised trades or fraudulent transactions in the Zerodha account?
Unauthorised trades can occur due to the following reasons:
- Most trading accounts are compromised because users willingly share their login details with fraudulent actors pretending to be advisors. Once these people have access to the account, they create intentional losses through to illiquid options and penny stocks to move money to other accounts.
- Phishing attempts are made by creating fake websites that resemble the login pages of brokers to capture the login details of users. To read more about phishing, visit zerodha.com/z-connect/tradezerodha/beware-of-the-phishing-scam.
- The common thing with hacking incidence has been the use of Rediffmail IDs. Hackers must be exploiting vulnerabilities in email service providers with weak security. Since all email hacking cases at Zerodha happen to use Rediffmail, Zerodha has taken the following actions:
- Blocked Rediffmail IDs on trading accounts.
- Stopped sending password reset e-mails to users with Rediffmail e-mail IDs.
- Constantly notify users to switch to another e-mail provider like Gmail, iCloud, Yahoo etc. See How to change the registered mobile number or email address with Zerodha?
In case any of the above may have happened, follow these steps:
- Call 080-46801166 between 8:30 AM to 5:00 PM, Monday - Friday, to block trading instantly or create a ticket for further assistance . From 5:00 PM till 11:30 PM, Monday - Friday, MCX traders can call 080-47181888 to block their accounts.
- Change the password of the Zerodha account. To learn more, see How to reset my Kite password?
- Visit cybercrime.gov.in/Webform/Crime_AuthoLogin.aspx and file an online complaint on the Cyber Crime Complaint Portal immediately.
- Take a copy of the online complaint and immediately file an FIR at the nearest police station. The police must contact the exchange on the same day. If the complaint is genuine, the exchange will take the following action:
In the case of share transfer, appropriate action is taken based on the status of the share transfer:
- Shares are transferred but not sold: In such cases, Zerodha blocks trading in the perpetrator's account and freezes the demat account as per police order.
- Shares are transferred and sold, but funds are not withdrawn: Zerodha blocks trading and payout in the perpetrator's account and freezes the demat account as per the police order.
- Shares are transferred, sold, and the funds are withdrawn : In such cases, the police have to investigate and take appropriate action.
If the loss in the client's account is due to a trade in an illiquid contract or illiquid stock, the client has to instruct the police to contact the exchange to withhold the payout on the same day, i.e. before the trade settlement at the exchange.
Create a ticket by attaching the online grievance report of the cybercrime complaint for further assistance from Zerodha.