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Robinhood Reports Data Breach Affecting 7 Million Of Its Customers

Stock trading platform Robinhood reports that it was hit with a data breach that affects about 7 million of its customers. The said data breach occurred on Wednesday, November 3, 2021 whereby hackers “obtained access to a limited amount of personal information.”

Robinhood Reports Data Breach Affecting 7 Million of Its Customers
Robinhood
Robinhood says this “data security incident” happened when the hackers tricked a customer support employee onto giving them access to Robinhood systems.
The tech company founded in 2013 assured customers about the incident. It said that no Social Security numbers, debit card numbers and bank account numbers were exposed. According to them, there has been no financial loss to the affected customers.
Data collected by the hackers are majorly personal like email addresses and full names. The hackers were able to further get additional information. This includes data of 310 customers in the form of a name, date of birth, and zip code.
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Robinhood was previously finer by FINRAfor  $70 million for misleading customers. Apparently, this $70 million fine will be used to settle charges over issues identified with the company’s stock trading service, as reported by The Verge. This fine is currently the highest in FINRA’s history.

According to FINRA, Robinhood has provided false and misleading information from time to time; such as displaying inaccurate information on its trading app on how much cash was in the customer’s account.

 

FINRA fines
FINRA fines

 

The regulatory body, FINRA claimed the trading app company neglected its duty to supervise trades, observe its technology; and ultimately failed to protect its own customers.

Robinhood immediately announced the data breach after it happened. Robinhood website gave a statement concerning the breach.  “As a safety-first company, we owe it to our customers to be transparent and act with integrity.” it wrote on its website.

“Following a diligent review, putting the entire Robinhood community on notice of this incident now is the right thing to do.” Chief security officer CALEB Sima also said.

 

 

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