In a series of tweets, the Zerodha boss explained, “Out of the ~65lk customers who traded with us last year, we have ~100 complaints of fraud. ~ 80 where login details were shared willingly & ~20 where email was hacked (all Rediffmail IDs)."
He wrote, “As a % of such cases or even normal complaints to overall active customers, we are among the lowest in the broking industry."
“So this isn't just about us; regardless of the broker, you need to be careful not to share your login details & use a secure email," Kamath noted.
Explaining further, he said, “Since all email hacking cases happen to use Rediffmail, it must have some vulnerability being exploited. We blocked Rediff IDs on trading accounts a while ago & have constantly been notifying users. We also now don't send password resets to Rediff email IDs."
The Zerodha chief also said that the firm will be launching a tool that disallows trades in illiquid options. “We are soon launching a tool that disallows trades in illiquid options far away from theoretical price + a Kill Switch option to block orders in all penny stocks similar to F&O," he said.
Zerodha reportedly swept into action to safeguard clients facing cyberattacks after a report revealed how demat accounts of many customers, including some from the company, were compromised.
Mumbai Police has also arrested five people on allegations of gaining access to demat accounts of the share broker and scamming them of ₹3.5 crore.
