Borderless Investing, the parent company of Stockal Securities, on November 4 denied any liability, wrongdoing, negligence or responsibility for the unauthorised activity, which led to around Rs 100 crore in fraudulent transactions on its platform.
On November 3, Moneycontrol reported that nearly 30 retail investors have allegedly lost more than Rs 100 crore in unauthorised stock trades linked to Bengaluru-headquartered fintech platform Stockal Securities.
The affected investors have alleged that their accounts were accessed without authorisation on October 15, resulting in the mass liquidation of their US blue-chip stock holdings and causing what "massive losses" to their portfolios.
In response to the Moneycontrol report and queries , Borderless Investing said its investigation has found "no evidence" of a breach or compromise of the platform, interface, infrastructure or internal systems.
"We have engaged independent cybersecurity specialists to examine our systems. We believe the affected account holders may have been victims of a social engineering attack involving information exposed in another company's data breach several weeks earlier. However, this connection remains unconfirmed & under active investigation," the statement said.