Online Security Threats

• Demat accounts can be targeted by cyber-attacks and hacking attempts.
• Weak passwords may lead to unauthorized access.
• Phishing scams can trick users into revealing login credentials.
• Malware and spyware can compromise account information.
• Public Wi-Fi networks increase the risk of data interception.

Operational Errors

• Incorrect data entry can result in wrong transactions.
• Mistakes in linking bank accounts may affect settlements.
• Errors during transfer requests can lead to loss of securities.
• Failure to update contact details may cause missed alerts.
• Mismanagement of account instructions can cause delays.

Third-Party Misuse

• Authorized representatives may misuse power of attorney.
• Brokers or intermediaries may execute unauthorized trades.
• Sharing login credentials with others increases misuse risk.
• Inadequate verification of requests may lead to fraudulent activity.
• Lax oversight of account operations can go unnoticed.

Technical and System Failures

• Downtime or glitches in depository participant systems can affect access.
• Server outages may delay transactions or settlements.
• Incomplete backups may result in loss of transaction data.
• Software bugs could impact transaction accuracy.
• Disruptions in connectivity can hinder account operations.

Regulatory and Compliance Risks

• Non-compliance with KYC norms can lead to account suspension.
• Failure to adhere to regulations may result in penalties.
• Changes in regulatory policies can impact account functioning.
• Lack of awareness about compliance requirements increases risk.
• Delay in responding to regulatory notices can have adverse effects.