With demat accounts being the only way to store shares and other securities that you purchase through the exchanges, protecting it from demat account frauds is extremely essential. Although your online demat account is protected to a certain extent under a user ID and password, there are a few ways in which demat frauds can still take place.
That said, if you’re worried about the safety of your trading and demat account and would like to enhance its security even further, then this article can help provide you with some ways through which you can achieve your goal. Continue reading to find out just how you can protect your online demat account.
1. Reconcile your trading and demat account regularly
Each time you buy or sell shares via your trading account, you receive a contract note with the details of all the transactions that you made. To make sure that the shares that you’ve bought have been credited to your demat account, you can do a simple reconciliation of both your contract note and your demat account statement. This way, you can easily spot any discrepancies on time and make sure that it gets rectified.
2. Never share your access credentials with anyone
Although this is obvious, it is something that many investors and traders fail to follow. Even if it is with your close ones, never share your user ID and password of your demat account. Also, don’t share any One Time Passwords (OTP) that you get on your registered mobile number or your email ID since it can be used to effect share transfers.
3. Don’t access your trading and demat account using public computers or public Wi-Fi
Both public computers and public Wi-Fi can pose a huge danger to your demat account. They may be infected with viruses or other malicious software, allowing unscrupulous individuals to access your demat account without your authorization. So, refrain from using them to log into your account by all means.
4. Freeze your demat account
If your demat account consists of shares or other securities and you plan to not use it for a long time, it is a good idea to freeze your account. This would prevent all debits to your account till you unfreeze it, thereby eliminating chances of demat fraud completely. Credits, however, by way of bonus shares and other means will continue to happen unhindered.
5. Keep your contact details updated at all times
If you ever change your mobile phone number or your address, make sure to update your demat account with the new details immediately. Failing to do so can leave your account vulnerable to demat account frauds. That’s not all. It is also advisable to check your contact details periodically to ensure that they contain the right information.
Following the above mentioned tips can help you keep your trading and demat account safe and secure at all times. If you’re interested in stock trading but don’t possess an online demat account, visit the website of Motilal Oswal right away. You can open a trading account and a demat account online within just a few minutes.
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