Respond to unauthorised trades by securing credentials, preserving alerts and order records, objecting promptly and using broker, exchange, SCORES and ODR channels.
The first hours matter because later market movement can complicate both loss and causation.
Stop further access and create a timestamped evidence file before debating the final compensation amount.
Call and email the broker.
Order and trade book.
Continuing to trade in the same account.
An unauthorised trade may arise from credential compromise, API access, dealer action, misunderstanding of authority or disputed instructions. The evidence differs for each scenario.
Investors should contact the broker immediately, request access restriction and record the exact trades disputed. Delay can be used to question whether the investor accepted the activity.
Loss calculation should separate trade price, subsequent market movement, charges and mitigation steps. Closing a position can reduce risk without waiving the complaint if documented carefully.
| Area | What to assess | Investor rule |
|---|---|---|
| Containment | Password, API and device access are secured. | Stop further activity. |
| Trade proof | Order time, channel, IP or device and execution are identified. | Preserve broker records. |
| Objection | Written dispute is sent promptly. | List each trade. |
| Escalation | Exchange, SCORES, ODR and cyber routes are assessed. | Track deadlines. |
Do not confuse an unexpected loss with an unauthorised trade. The key issue is whether valid authority existed for the specific order.
Preserve both the original disputed position and the investor’s mitigation actions so causation can be evaluated.
Use current official documents and the investor’s actual statement. Regulations, charges, taxation, product availability and complaint procedures can change, while generic online examples may use an older framework.
Do not convert operational convenience into a return assumption. Fast application, app display, daily liquidity or exchange listing does not guarantee value, recovery, acceptance or an executable exit price.
Start with the legal and operational record, not the app summary. The investor should be able to trace the asset or transaction through the intermediary, depository, bank, issuer or fund document without relying on screenshots controlled by one platform.
Suitability depends on household capacity. Money required for emergencies, education, near-term housing, debt repayment or essential retirement spending should not be exposed to leverage, illiquidity or uncertain recovery merely because the product is regulated.
Record the decision before acting: amount, purpose, expected return source, maximum credible loss, holding period, liquidity and exit route. This reduces hindsight bias when markets or personal circumstances change.
Review official records after the transaction. Application, allotment, contract note, depository credit, bank debit, pledge, lien, redemption or transmission should all reconcile.
Security controls matter as much as market analysis. Protect email, SIM, devices, passwords, APIs, OTPs and TPINs, and investigate alerts immediately.
When a dispute arises, separate unauthorised activity, execution quality, market loss, charges, margin shortfall and service failure. Each issue requires different evidence and relief.
A defensible investor file should show the legal entity, account or folio, transaction date, amount, product document, money trail, asset record and any instruction or complaint. Store it outside the disputed platform.
When records disagree, resolve the unit or transaction difference before comparing market value. Price movement can distract from missing securities, duplicate debits, wrong bank details or an unclosed pledge.
For complaints, state the exact duty or service failure and the relief requested. Market loss, unauthorised trade, mis-selling, wrong charge, delayed transfer and cyber fraud should not be combined into one vague allegation.