🚨 BREAKING: Nearly 30 Indian investors reportedly lost over ₹100 crore in a Stockal trading fraud after their US stock portfolios were sold without authorisation. The incident reportedly took place on October 15, when investors' US stock holdings were liquidated without their consent. The money was then used to buy shares of Chinese penny stock Zhibao Technology (ZBAO), which was dumped shortly afterwards. Stockal's response: Stockal suspects phishing or social engineering may have compromised investors' email accounts and login credentials. It says it has found no evidence of a breach of its own platform so far. The investigation is ongoing. DriveWealth's response: DriveWealth, the US brokerage responsible for executing trades and holding the shares, blamed security lapses at Stockal's end. In an October 30 letter, DriveWealth also alleged that Stockal instructed it to freeze affected accounts and paused certain corrective actions. HDFC Securities connection: HDFC Securities partnered with Stockal in 2019 to offer US stock investing to Indian customers. The partnership ended in July 2024, and HDFC subsequently partnered with Vested Finance. However, existing accounts opened before July 19, 2024, are still directed to Stockal. This incident raises serious questions about the security of overseas stock investments through Indian platforms, the accountability of foreign brokerage partners, and the safeguards available to investors when something goes wrong.