The app tries to give a fake impression to users that it is the authorized app of CDSCL that provides centralized depository, clearing and settlement services to investors, CDSCL said issuing a statement
KATHMANDU, July 4: CDS and Clearing Ltd (CDSCL) has cautioned investors against downloading or using a mobile application named ‘Mero Share’ developed by the little-known developer Little d Business.
Mero Share is a service provided by the CDSCL through which investors can see their transactions details in their demat account online.
The app tries to give a fake impression to users that it is the authorized app of CDSCL that provides centralized depository, clearing and settlement services to investors, CDSCL said issuing a statement on Tuesday.
It has been downloaded by over 1,000 users from Google PlayStore. Once downloaded, the app seeks the ‘log in’ id and password of ‘Mero Share’ users to enter into its system.
While the CDSCL denied that the data of investors stored on its server and website for share trading purpose has been compromised or the app developer has got the access to the data of the users of Mero Share software, this episode prompts concerns among investors about the vulnerability of data of investors in the stock market.
“The data of the investors is totally safe and it has not been compromised. It seems that some novice developer has developed the app. It is not an authorized app of the CDSCL,” Dev Prakash Gupta, CEO of CDSCL, said. “We have started the process to remove the app from the PlayStore.”
The CDSCL is also developing its own mobile application, according to Gupta.
While the data might be safe as claimed by the CDSCL’s CEO, the press statement issued by the company admits that the unauthorized apps like this one could jeopardize the security of data of the demat account of the users downloading and using such apps.
The motive of the developer of the bogus app is not clear. However, there is no denial that such attempt could dupe investors into sharing their demat ‘log in’ details while logging into its system.
Meanwhile, investors have call for more safeguard measures from Nepal Stock Exchange (Nepse) and CDSCL to minimize the risk, resulting from the use of technology and online platforms as the stock exchange company gears for the implementation of automated trading system.
Nepse has announced that it will bring the fully-automated trading system into operation from July 17 in parallel with the existing computerized trading system.
“This case shows that Nepse and CDSCl should be more careful about data privacy and take needful measures to minimize risks resulting from the use of technology and online platforms,” Dilip Munankarmi, an investor, told Republica.