Bengaluru police have started an investigation into unauthorized trading linked to Stockal, a platform for investing in U.S. stocks. The probe began after reports showed that 13 accounts were affected, leading to losses of $6.26 million, or about ₹58.8 crore, according to the company’s parent, Borderless.
Key Details
Borderless said the unauthorized trades happened after a cybersecurity issue at DriveWealth, a U.S. brokerage firm. The company noted that all 26 customers impacted by the unauthorized activity had their account information compromised during DriveWealth's data breach in September. Borderless highlighted the clear similarities between the two incidents.
Background
The police have called in top executives from Stockal as part of their investigation. Officials are examining the circumstances around the unauthorized trades and the possible effects on affected investors. The investigation aims to find out who is responsible and to prevent further incidents.
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This investigation could affect investor confidence in online trading platforms, especially those dealing with U.S. stocks. Affected investors may seek compensation, which could lead to more scrutiny of cybersecurity practices in the industry. Keep an eye out for updates on the police investigation and any statements from Borderless about the steps they are taking to improve security.
Based on reporting by: moneycontrol.com