This seems to be extreme but is even a milder version possible in Indian broking accounts?
Hacking one account maybe possible but at scale like in this case seems not possible in Indian markets and the reason has to do with our stringent security measures like 2 factor authentication.
Can check below para which I copied from that article, it clearly talks about the importance of multi factor authentication and we already have that.
“The Japan Securities Dealers Association, the umbrella group for the country’s securities firms, is also pushing its members to upgrade their systems to make multi-factor authentication mandatory.”
Also few brokers are not following this multi factor authentication and they are allowing to login with just pin or password which are stagnant and easy to hack, they are making it easy to hack so as a user you should be wise to make right decision in choosing your broker.
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if something like this happens in India ; how will the traders / investors be compensated ? and by whom will be compensated ?
At individual level no one will compensate, it will be fraud case and law will take it’s own course.
If this happens for many clients then as of now there are no rules as such that someone will compensate as there is no precedence for it, that’s why choose a broker who follow right security measures. Prevention is better than cure.
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