Angel One, a leading stockbroking firm, has reported an incident of unauthorized access to its clients’ data on April 20th. The security breach has set off concerns among its investors and users regarding the safety of their funds and data.
Data Breach Verification Process
In a filing with the Bombay Stock Exchange after the incident, Angel One stated that it received emails claiming unauthorised access to its clients’ data. The company is currently in the process of verifying the veracity of these claims. The firm reported that certain client profile data, including names, mobile numbers, and email addresses, may have been accessed in an unauthorised manner. Client securities, funds, and credentials, on the other hand, were unaffected by the breach.
The firm’s users should not be concerned since the data accessed has no effect on any transactions. Angel One uses a Two-Factor Authentication (2FA) protocol for access to all client accounts, which verifies clients’ login credentials by OTP (One-Time Password) and their M-PIN. Furthermore, clients’ login credentials are kept encrypted in the firm’s systems and have not been breached.
Angel One is currently working on identifying the source of the breach. Meanwhile, the company has validated its current infrastructure to prevent any further unauthorised access.
Impact of data breach on Stock
Angel One’s shares fell by over 2% to Rs. 1,212 in Friday’s trade on BSE due to this data breach news. The stock was trading 1.2% lower at Rs. 1,223 at 10:59 am.
Angel One reported a year-on-year (YoY) consolidated net profit growth of 31% to Rs. 267 crore in Q4FY23. This figure is up from Rs. 205 crore in the same period last year. The firm’s revenue from operations grew by 21.2% to Rs. 826 crore in the fourth quarter, compared to Rs. 681 crore during the same period last year. Angel One also reported an EBITDA of Rs. 370 crore.
During the fourth quarter, the brokers’ total client base rose 49% YoY and 10% QoQ to 13.8 million, with 1.3 million gross client acquisitions. The company’s share of India’s Demat accounts increased by 48 basis points to 12% sequentially.
Angel One also declared a final dividend of Rs. 4 per share for the financial year ended March 31st.
Angel One’s swift action shows that the firm is taking all necessary measures to mitigate the impact of this incident. The brokerage has confirmed that clients’ securities, funds, and credentials remain secure, and the unauthorised data access cannot be used for any transactions. The company has a good financial performance with significant YoY growth in net profit and total client base. Its shareholders can enjoy the dividend declared despite the present downturn in stock prices.
Overall, Angel One has assured its clients and investors that their data and funds remain secure, and its swift and proactive measures have prevented any further unauthorised access.