• Fraudsters alter client details to conduct unauthorized financial transactions.
• Fake identities and addresses are used to bypass banking security measures.
• This method is often used in stock market scams and illegal trading.

3. National Spot Exchange Limited (NSEL) Case (2013)

Steps of the Fraud:

1. Misrepresentation by Brokers:
   • Brokers mis-sold NSEL products to clients, promising assured returns without ensuring actual commodity deliveries.
2. Manipulation of Client Information:
   • They manipulated client KYCs, modified client codes, and conducted unauthorized trades on behalf of clients.
3. Fabrication of Documents:
   • Brokers fabricated warehouse receipts and other documents to mislead investors about the security of their investments.
4. Regulatory Action:
   • The Securities and Exchange Board of India (SEBI) issued show-cause notices to top brokers for violations, including KYC manipulation and mis-selling.
5. Legal Consequences:
   • Several brokers were declared “not fit and proper” by SEBI and faced legal actions for their involvement in the scam.