In the world of stock trading, where people hope to make quick profits, it’s easy to fall into traps. Danish (name changed) experienced a similar fraud when a broker convinced him to open a trading account, which led to unexpected losses.
Here is the complete detail of how the broker played with his trust but Danish’s continuous efforts finally helped in getting a recovery of 70% of the lost amount.
How Did a Broker Build Pressure on Danish?
Danish who already had two demat accounts with renowned stock brokers, received an executive of a third broker.
The executive convinced him to open a demat account. Danish, however, refused by saying that he already had two accounts and also not trading actively.
On this, the executive told him that the broker’s team would handle his account and help him in making a profit.
Even though Danish was unsure, the continuous approach of the broker’s execution made him finally open a demat account. He then shared his details with the concerned person.
Danish Faced Unexpected Losses
Later the broker asked him to add ₹50,000 funds, however Danish due to shortage of capital added ₹35,000/-. The broker immediately took control of his account and started placing multiple positions.
But instead of making profits, all the trades went wrong.
In just one hour, Danish lost around ₹13,000, and on top of that, the broker charged him a hefty brokerage of ₹18,200. In short, his account blew off in just 1 hour.
For almost a year, he tried everything to get his money back. He called the broker multiple times, sent emails, and even visited the broker’s office.
But nothing worked.
The broker either ignored his calls or made excuses, making it clear that he wasn’t interested in returning the money.
Danish felt helpless. Just when he was about to give up, someone suggested he contact the FraudFree team at ADB.
How did the ADB Team Help Danish Get a Refund?
Danish reached out to the A Digital Blogger team and explained his situation. The team carefully reviewed all the evidence and validated his claims. They then sent a detailed email to the broker, explaining the unethical practices and demanding a refund.
Within three days, the broker responded, offering to refund ₹18,000. But Danish, who had lost much more, asked for ₹25,000. After some negotiation, the broker agreed, and Danish finally got his money back.
What Can You Learn from This?
Danish’s story is not unique. Many people fall into similar traps due to a lack of knowledge and trust in the wrong people.
This incident highlights the importance of being cautious and aware while trading.
If you or someone you know is in a similar situation, remember that seeking help and taking timely action can make a difference.
Always stay alert and aware of the SEBI’s regulation which clearly warns for Account Handing and other similar scams. Above all, never let anyone pressure you into making decisions you’re not comfortable with.
