TODAY -

Share market frauds : Investment & investors at risk

Varun Kapoor *



The share market a place where dreams are made and dreams are often dashed and broken too! A place where people invest their hard earned savings with the expectation of enhanced and improved returns. Generally it is observed that citizens of India are thrifty in their expenditures and each and every household depending upon their ability, try to make small savings. This kind of household savings are done generally by the ladies of the house.

With each passing day as the amount in store swells, the family and the lady in particular, get a sense of well being and security. Thus this saving is so very important not only because it represents prudent expenditure but also it embodies an escape route and a protective umbrella when the chips are down and financial disaster stares.

At the point the saving becomes of reasonable proportion the family decides to invest. Secure investment for this saving is the first criterion that is considered. Returns and profits are secondary considerations. Investment of savings are done in a variety of means – saving bank deposit; fixed deposits; gold; land; mutual funds; insurance policies and shares and debentures. The emphasis is always on secure rate of return rather than enhanced rate of return.

Imagine in such savings and investments – criminal elements intervene and rob the citizen of not only the return but the entire saving itself – then where would such conned citizens go? The quantum of loss suffered by them can never be imagined in mere monitory terms.

The loss is not only of cash liquidity but also a colossal loss of a sense of security, future plans and in a way the entire sense of well being! And this is happening with increased rapidity and regularity, the primary cause of which is lack of awareness and understanding by an average citizen of the trickery and deception possible in the virtual world.

The share market investors are facing this threat all the time. The modus operandi of these share market cyber conmen is quite simple. They use data garnered about investors in stock broking firms and then contact them through a simple telephone call and attempt to con them into changing their investment patterns.

They act as representatives of the firm in which the person has a portfolio and then advice them to heavily buy shares of an insignificant company promising great returns. This basically is a Phishing attack.

The criminals will make such alluring phone calls to a number of investors – most will ignore such calls totally, some will cross check from the broking firm about the authenticity but a few will believe them blindly and do as said and buy the bogus shares. This is classic case of phishing.

Alternatively the cyber conmen will generate bulk SMS in the name of certain investment firms and send them to the unsuspecting investors of that firm. Again these sms will be like a commercial message sent by many companies to their customers. This again acts in the manner as a well designed and executed phishing attack. Some investors genuinely get duped and transfer huge amounts of their hard earned cash into stocks of companies which have no standing and are bogus, to say the least.

The question that arises is – how do the cyber criminals come to know the names and contact details of investors of any particular broking company? It is only after they have the relevant contact details that they attack the unsuspecting victims. This they may achieve through two means – Hacking into the companies data base and throw insider information.

The Hacking procedure is quite simple. Professional hackers unleash attacks on the server that they want to target. They gain clandestine entry and steal the data that they need and exit the domain.

The company and its cyber security regime (if any such is in place in the first place), will not even know that such a hack has taken place – till it is too late. This stolen data is then sold in the cyber black market at throw away prices – as low as 10 paisa for one contact detail! Cyber conmen buy such data and the rest as they say is history.

Insider information is another means for cyber criminals to get desired information to target the victims. Insider information refers to information provided by an employee of the concerned firm who leaks information to an outside element about the investors.

This leak may be motivated by a variety of causes. The concerned employee may do it for money, revenge, blackmail, keeping employee in the dark regarding the use of such leaked information or any other reason. But the information thus leaked falls into the wrong hands and the innocent investors suffer.

That is why in a number of such attacks it is observed that fresh investors are targeted more often as they may be easier to con as they are yet not used to the ways and means of the company concerned. This clearly indicates an insider information linkage.

The best way to beat such a concerted phishing attack is to follow a simple principle. Do not engage with any caller offering financial advice, financial rewards and gains on telephone. It may concern banking, shopping, insurance, shares etc – whatever it may be the answer has to be – “no thank you”! If the caller insists just say that he/she should contact the person in the real world and not over the phone, mail or sms and then make the offer. That is the best and only way for protection.

Maybe just maybe some investment opportunity or good offer is missed, the loss will be miniscule as compared to the loss that you may suffer if any such call, sms or mail is a hoax. The English proverb – a bird in hand is better than two in the bush – is the best proverb to go by in all such cases.


[Views expressed in the column are of the author himself]


* Varun Kapoor wrote this article for The Sangai Express
The writer is IPS – ADG Narcotics & PRTS Indore (MP)
This article was webcasted on October 26, 2018.



* Comments posted by users in this discussion thread and other parts of this site are opinions of the individuals posting them (whose user ID is displayed alongside) and not the views of e-pao.net. We strongly recommend that users exercise responsibility, sensitivity and caution over language while writing your opinions which will be seen and read by other users. Please read a complete Guideline on using comments on this website.




LATEST IN E-PAO.NET
  • Dzukou Valley, Senapati : Gallery
  • Chiraikangja, Apaibi :: eMing
  • Demand for ILP :: Articles/Photos...
  • Rules of the Road at Silicon Valley
  • What is a school meant for ?
  • Why meiteis should not be ST #3
  • Release Thokchom Veewom - II
  • Release Thokchom Veewom - I
  • Face scrubs to avoid dirt & dullness
  • SM4E Awards 2019 : Nomination open
  • After effect of CAB collapse
  • Need to look beyond CAB
  • Panel seeks support to save NH
  • Amuktang-Ga Haikho #2 : eRang
  • Exam Centre allocation for HSLC 2019
  • 3rd World Bamboo Workshop #2 : Gallery
  • Cry of a Dying River - 65 :: Poem
  • DIPR facts on Census confuse Pangals
  • Manipur Tourism: Global Mice Congress
  • Coping up with examination stresses
  • On Govt inability to present CAB
  • Breather for the North East
  • Henjunaha #2 :: Funga Wari
  • Sangai Chef: Season 1 : Gallery
  • CAB: Imphal I/W [12 Feb] #2: Gallery
  • Lui-Ngai-Ni -Naga Seed Sowing Fest
  • Inner Line Permit (ILP) Demand :: Timeline
  • Different opinions on CAB 2016
  • Change of B Voc Examination Schedule
  • Nagaland MP will vote against CAB
  • Overshadowing issues by CAB
  • RS adjourned till February 13
  • CAB: Imphal I/W [12 Feb] #1: Gallery
  • CAB: Blockade [7 Feb] #2: Gallery
  • Keisham Priyokumar's short stories? #1
  • Just a beautiful lie :: Poem
  • World Wetlands Day 2019
  • Protests against Union HRD Ministry
  • 'PDA trying to confuse Naga people'
  • The 'ban' of Internet
  • Setting date with February 12, 2019
  • NSCN (I-M) elects new leaders
  • Scientific Knowledge in Manuscript
  • Poppy destruction @CCpur : Gallery
  • Kishorechand Wangkhem's case
  • 70th Indian Republic Day #3 : Gallery
  • Hinduism and Indianess
  • CAB: Maharaj & Xenophobia :: WJ
  • Deciphering a laboratory test report
  • Stop discrimination against women
  • The falls of protracted leader
  • More than hinting CAB will be tabled
  • CAB: Khwairamband [10 Feb] #1: Gallery
  • Gaan-Ngai @Majorkhul #2 : Gallery
  • Human trafficking at Moreh
  • Why meiteis should not be ST #2
  • The Dark Light :: Poem
  • Exclusion of Pvt Teachers from HSLC
  • Pan Meetei met Ex Dy CM
  • NSS special camp 2019 concluded
  • NE to Bangkok flight from March
  • CAB: Khwairamband [9 Feb] : Gallery
  • Thamoise Foidattuna :: e-pao Radio
  • CAB Meira Rally #4 [30 Jan] : Gallery
  • Prof T Kameshwar: Reminiscence
  • Bamboo Cooking Competition: Final Day
  • Tips for healthier skin this winter
  • Sincerity matters
  • Awaiting final pact with NSCN (IM)
  • CAB: Blockade [7 Feb] #1: Gallery
  • 3rd World Bamboo Workshop #1 : Gallery
  • The panic radiated at War-Torn PAD
  • NE- Socio-Economic Development: Book
  • CAB- Consequences in Manipur
  • [ST] Demand for Constitutional Safeguard
  • 'ArP to observe Black Day during PM visit'
  • CAB date with RS on Feb 12 ?
  • Check Post (ICP) @ Moreh : Gallery
  • Tribes India [Exhibition] #2 : Gallery
  • Citizenship Bill, 2016: What to do now #4
  • It's a privilege to be a Rongmei
  • A Saviour Of My Own :: Poem
  • North East Startup Summit 2019
  • Budget : Full, half or quarter ?
  • BJP shows no concern for NE states
  • Mission schools under threat again
  • CAB : Blockade @Tiddim [6 Feb] : Gallery
  • Dolaithabi Barrage: Concealing Facts
  • 70th Indian Republic Day #2 : Gallery
  • Marketing Associates @ PiCiDi Systems
  • CAB, Political Parties and Manipur
  • The Novels Of BM Maisnamba #2
  • Employment in non-Govt sectors in Manipur
  • The board exam festival
  • Naga Peace Process :: News Timeline
  • NE voice on CAB: no worry for the BJP
  • Alienating natives & embracing foreigners
  • Henjunaha #1 :: Funga Wari
  • CAB Gen Strike #2 [31 Jan] : Gallery
  • Movement against Citizenship Bill in NE
  • Bamboo Cooking Competition: Day 1 Report
  • A girl with a Bicycle :: Poem
  • Mithun (Sandang) Mela at Machi
  • Disrespect to mother earth
  • Significance of MANPAC
  • Konthoujam Maikel (Painter) :: Profile
  • CAB Meira Rally #3 [30 Jan] : Gallery
  • Business as usual will fail on cancer control
  • Citizenship Bill: Thinking with ethics
  • STDCM reasserts Demand for ST
  • NE Pol parties met Union Home Minister
  • Free Heart Screening at Jiribam & Silchar
  • The ultimate showdown
  • Nepal to SE Asia: Trafficking via Moreh
  • Symbolism in the Tribal Art #2
  • Aribam Syam return Padmashree to Govt
  • Literature review
  • CAB : An Adhesive for Integrity of Manipur
  • Cry of a Dying River - 64 :: Poem
  • Impact of AI and Robotics on Society
  • New MSAD Executive term 2019
  • Rejoinder from Shurhozelie Liezietsu -Feb 3
  • Festival to promote NE trade, tourism
  • Onetwo Okram : Singer- Profile :: eRang
  • CAB : Film Forum Protest : Gallery
  • Cultural: Republic Day #1: Gallery
  • Why Manipuri people oppose CAB? #2
  • Antibiotic Consumption by farm animals
  • The Beauty of the Sunset :: Poem
  • Coordinator of Social Media for Congress
  • Rejoinder to NDPP [Feb 2]
  • Non presentation of CAB at RS is an insult
  • Noting anti-CAB stand of NPP, NPF
  • CAB Gen Strike #1 [31 Jan] : Gallery
  • Match: 4th Women's Polo #3: Gallery
  • Citizenship Bill, 2016: What to do now #3
  • Truth of Manipur is inherent in nature
  • Chola Pass & Chola Range in Sikkim
  • JRF required at IBSD, Imphal
  • NPF disclosure on Citizenship Bill
  • Viral audio which confuse people
  • CAB indication from President
  • Imoinu Erat Thouni #3 : Gallery
  • February Calendar for Year 2019 :: Tools
  • CAB Meira Rally #2 [30 Jan] : Gallery
  • The Novels Of BM Maisnamba #1
  • Screen time, effect on speech & language
  • Trainees Certificate of Lunglei, Mizoram
  • ST: Unfounded fear psychosis being spread
  • Join the people, brother/sisters of state BJP
  • CAB : The rallying point for NE
  • CAB Meira Rally #1 [30 Jan] : Gallery
  • CAB Protest #1 [29 Jan] : Gallery
  • NE Railway's Work & fate of Villages
  • Fellowship Meet of Maring Naga
  • Legal Awareness for Women leaders
  • Flowers for beauty
  • Opposing ST demand of STDCM
  • Gaan-Ngai @Namthanlong : Gallery
  • Why Manipuri people oppose CAB? #1
  • Citizenship Bill, 2016: What to do now #2
  • Oinam Shilla : Society Development Award
  • Let this year be your year
  • Release Journalist Keshore Wangkhem
  • Bill haunt NE today, may haunt BJP tomm
  • Staying away from all parties meet
  • Taking the Street Vendor seriously #2
  • CAB Protest #2 [21 Jan] : Gallery
  • I'm sorry :: Poem
  • Self-development
  • Time to Reshape Reservation Policy
  • Sikandra, where Akbar the Great rests
  • Wise rulers listens kingmakers
  • Understanding National Voters' Day
  • 70th Indian Republic Day #1 : Gallery
  • Agri Fair @ CAU #1 : Gallery
  • MIK (Manipuri in Kolkata) : Gallery
  • Of Manipuri marriages & Swasti Pujas
  • 2nd AMAND Blood Donation Camp at Pune
  • NSUD : on call centre scam at Noida
  • The Banyan :: EI
  • Match: 4th Women's Polo #2: Gallery
  • Why shouldn't Meitei be included in ST
  • Some lessons from Ramayan
  • Republic Day celebrated across North East
  • Mizo Gov addresses RDay in empty ground
  • On the arrest of Gen Sec of RSF
  • International exposure via business
  • Kitchen Ingredients- can be used on skin
  • Republic Day at Loktak Power Station
  • 'A slap in the face for PDA government'
  • No final solution yet in sight !!
  • Combing Operation @Hatta : Gallery
  • Laishram Bombayla : Padma Shri Award
  • Female sex tourism: Sociological study
  • Imphal Declaration: Pan Meetei Convention
  • RPL trainees of Damparengui, Mizoram
  • Is the country listening ?
  • Yet another boycott call of R-Day
  • Maisnam Renuka (Painter) : Profile
  • Thank You Note: Khumukcham Sanjita
  • Gaan-Ngai - festival of Kabui #2
  • Imoinu Erat Thouni #2 : Gallery
  • Rongmei and Kabui are one
  • Rani Khidir : Kalaritu (Laiyekpa) : Profile
  • 11 in line for Congress ticket
  • Gaan-Ngai @Majorkhul #1 : Gallery
  • Eyek Tamba :: Learn Manipuri script
  • Match: 4th Women's Polo #1: Gallery
  • CAB Protest [17 Jan] : Gallery
  • Ranjit Ningthouja : Profile of a playwright
  • Imoinu Erat Thouni #1 : Gallery
  • Dr Thokchom Asha: Teacher Award
  • Purnima Ngangom (Printmaker) :: Profile
  • The Killing Fields 2013-18 : News Timeline
  • New Year picnic at Sekmai #2: Gallery
  • WWII museums in Japan: Gallery
  • Manipuri Calendar for 2019 : Download
  • Featured Front Page Photo 2018 #6: Gallery
  • Irengbam Bedamani - Actress :: eRang
  • List of Restricted Holidays for 2019
  • List of Public Holidays for 2019
  • List of General Holidays for 2019
  • Fabrics of Bangladeshi Manipuri: Download
  • Old Manipuri Movie #1 :: eRang Classic
  • SPONSORED ADS