It is human tendency to want to earn "easy and fast money". Most of us get attracted towards such words. In today's world where most of the information is available through just a click of a mouse, we need to be very alert in order to prevent online frauds.
Beware of Online Frauds
The above statement holds true especially for the Securities market where some people give their money to their friends and relatives to trade on their behalf. If not, they open accounts in their own name and share all the trading passwords with the other person, entrusting the "friend" to trade on their behalf. You need to beware of online frauds.
Generally, in such cases, the person trading on the customer's behalf manages to earn some quick profits for them, usually through some form of profit sharing. By doing so, the customer does not actually bother to check any reports, look at the trade contract notes or any other trade-related details. Here, the customer is thereby making the biggest mistake: he is entrusting his friend/relative to trade on his account and gives him all hi trading passwords which is not at all advisable under any circumstances.
There are a few ways to avoid frauds happening on your online trading account.
- Do not share your passwords and login details with others.
- Please provide all verification information asked during call and trade so as to avoid frauds.
- For any change of account information follow the broker's complete procedure.
- Keep regular checks on your account reports, contract notes, and bills sent to you.
- Contact the broker's customer service who can help guide you in ways to avoid fraud.
For example, we at RKSV try to check every level of security before any client does a call and trade by asking the client their various personal details of which only the client is aware of. The best way is to call from your registered number so no one intending, tries to commit fraud.
Also, another key aspect with it comes to online fraud has to with sub-brokers who are not a directly affiliated with the broker, and RM's (Relationship Managers) who provide tips and trade on behalf of the clients. Clients are advised to check, on a daily basis, all contract notes. This is especially important since it is the natural tendency for the RM/Sub-Broker to not care much about being profitable, but to only generate turnover and brokerage, so they don't care much about the client's profitability. So, by continuously viewing your contract notes daily to ensure what type of trading is going on in your account, you can keep a close watch to ensure that fraud is not happening on your account.
If we really want to earn some money in share market then open a demat account with an online trusted broker, slowly start trading by observing a few stocks on a daily basis and then pump in little capital and work hard for yourself to earn money and save your capital and relationships from eroding. Don't trust others with your hard-earned money: trade on your own behalf!
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