Indian stock trading firm Upstox has revealed to users that it has suffered a serious security breach that may have seen unauthorized criminal access to millions of customers’ personal information.
According to a statement posted by Upstox on its website, it became aware that criminals may have compromised its databases after receiving emails from the suspected hackers.
Customers’ names, contact information, date of birth, bank account information, and millions of KYC (Know Your Customer) details are believed to have been stolen by the ShinyHunters gang after they gained access to the company’s Amazon AWS key.
Security researcher Rajshekhar Rajaharia told Medianama that the ShinyHunters gang was seeking a ransom payment from Upstox for the stolen data.
In response to the suspected breach, Upstox’s co-founder and CEO Ravi Kumar reassured customers that their funds remain safe, and said the company was strengthening its security:
“We would like to assure you that your funds and securities are protected and remain safe. Funds can only be moved to your linked bank accounts and your securities are held with the relevant depositories. As a matter of abundant caution, we have also initiated a secure password reset via OTP”.
In addition, Upstox says it has temporarily disabled its desktop trading platforms, NEST trader terminal, Dartstock & Fox Trader. Users are advised to trade through its website instead.
Obviously, it makes sense to ensure that you don’t use a password for your Upstox account that you are using anywhere else on the net, and don’t allow yourself to be tricked into sharing your OTP (one-time-password) code with anyone.
Upstox concludes by reminding customers that it takes customers’ security and privacy “very seriously.”
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A breach of KYC data is particularly serious – because it can contain scans of ID cards, passports, photo IDs, and other documents that help prove an individual’s address such as utility bills.
Such information helps financial organizations determine the true identity of a customer, and fight money laundering and the funding of terrorism, but if they fall into the wrong hands can be abused by identity thieves and scammers.
Confirming the development Ravi Kumar, Co-Founder and Chief Executive Officer (CEO) of Upstox, said, “Upstox can offer ‘zero brokerage’ to customers for stock investments because we use to design and technology to cut costs at every level of operations and transfer this cost-benefit to the end customer. Online stockbrokers and trading platforms like Upstox neither need investments to open branches nor have large fixed overhead expenses.
Even industrialists like Ratan Tata-backed online broking firm Upstox cuts trading fees to 'nil'. So, there is no reason it to be a SCAM.
Online stockbrokers and trading platforms like Upstox neither need investments to open branches nor have large fixed overhead expenses.
Online commodity and equity broking firm Upstox has cut its brokerage fee to as low as ‘nil’ to attract participation from retail traders.
Upstox Special Offers
Open Free Demat + trading account
- Pay Rs 0 Brokerage for Equity Delivery, Mutual Funds, and Digital Gold.
- Pay flat Rs 20 for Intra-day and F&O Trades.
- Get Free Digital Gold (worth Rs 51)
It is a limited-time offer. Open Instant Account online and start trading the same day.
Upstox Pros (Advantages):-
The following are the advantages of Upstox. You must read Upstox's advantages and disadvantages before opening an account with Upstox. Upstox pros and cons help you find if it suits your investment needs.
- Upstox offers brokerage-free trading in the Equity Delivery segment (Customer does not have to pay brokerage for delivery trades in the equity segment).
- Mobile trading app available for both Android and iOS phones. No software uses charges.
- After Market Order (AMO) and Cover Order are available on both web and mobile.
- Trailing-Stop/Stop-Loss (SL) is available on both web and mobile.
- Upstox Pro Web Trading Platform offers multiple indicators to monitor markets on the go.
- Upstox Bridge for AmiBroker helps you to code & execute your trading strategy using the AmiBroker AFL editor.
- Upstox Developer Console helps you build (code) your own trading app using languages such as Python.
- Upstox Option Chain Tool helps traders find out Spot, Future prices, vertical comparison of rates, get details such as circuit levels, Open High Low Close and market depth. It allows customers to measure volatility, open Interest, performance indicator, and check greeks as well.
- Upstox MF Platform offers 1000's Mutual Funds to invest in. Customers can choose the Lumpsum or SIP pattern of investing.
- Margin Against Shares is available.
- Online IPO Application (UPI) is available.
Upstox Cons (Disadvantages):-
The following are the cons of Upstox. Check the list of Upstox drawbacks.
- Good Till Cancelled (GTC) and Good Till Date/Time (GTD) Orders are not available in Equity Segment. GTC/GTD orders are available in commodity trading.
- Margin Funding is not available on delivery trades.
- Upstox doesn't offer unlimited monthly trading plans.
- Call and trade fee is charged at extra Rs 20 per executed order (Rs 20 Brokerage + Rs 20 Call & Trade Fee).
- Additional Rs 20 per executed order is charged for Intraday square MIS/BO/CO orders when they are not square off by the customer.
- Brokerage-free trading is available only in the Equity Delivery segment (in Upstox Basic plan). For all other segments including Equity F&O, Commodity F&O, and Currency Derivative, the brokerage is charged at Rs 20 or lower per trade.
- In Upstox basic plan, though brokerage is free, customers still have to pay the Demat Transaction Charges. Upstox Demat debit transaction charges (Rs 21.83) are high than other discount brokers who charge a fee of Rs 15.93 per Demat debit transaction.
- Doesn't provide stock tips or recommendations.
- 3-in-1 accounts are not available as the company doesn't provide banking services.
- 24/7 customer service is not available.
- Upstox NRI Trading and Demat accounts are no more available (since Jan 2018).
- Upstox doesn't offer API access for automated trading.
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