Business/Alive News: Indian investors using overseas investment platform Stockal Securities have raised concerns after their US stock holdings were allegedly sold without their permission. The proceeds were reportedly used to purchase shares of thinly traded microcap companies, raising fears of a possible cyber attack and trading fraud.
Stockal Securities, which was rebranded as Borderless in 2025, said that 26 customer accounts appeared to have been accessed using valid login credentials. According to the company, unauthorised activity was detected in 13 of these accounts.
In these accounts, existing investments in large US companies were reportedly sold and the money was used to buy microcap stocks. Such shares generally have low trading volumes and can be difficult to sell quickly.
Concerns Over Investors’ Money
The incident has raised serious concerns among Indian investors who use international investment platforms to purchase US-listed shares.
Over the past few years, overseas investing has become popular in India. Fintech platforms have made it easier for retail investors to buy shares of major American companies, including Amazon, Apple, Microsoft and Nvidia.
However, the reported transactions have raised questions about account security, investor protection and the monitoring of suspicious trading activity.
How the Suspected Fraud Worked
According to the company’s statement, the accounts were accessed using valid login credentials. In 13 cases, large-cap US stocks were sold and the proceeds were used to purchase less liquid microcap securities.
The incident has highlighted the risks associated with online investment accounts and the importance of strong security measures.
The exact financial losses, the source of the suspected account access and the recovery of affected investments were not established in the available information. Investors are awaiting further clarity on the incident and the steps being taken to protect their holdings.
