Robinhood suffers data breach that exposes user mail ids and names

Karthik Subramanian

Robinhood, one of the most used stock trading apps in the US, has announced that it has suffered a data breach which has led to the compromising of some information of millions of its users as it works to contain the breach.

The breach is reported to have happened on Nov 3 when a hacker called up the customer support of the app and led them to believe that the call was from one of its partners. This led to the executive handing over the customer support system access to the hacker who then proceeded to steal the email ids of around 5 million users as well as the names of 2 million users. The hacker also got hold of the names, date of birth, and zip codes of 310 users before the breach was detected and the company has since proceeded to block the same. This type of hacking is called social engineering where an employee is ‘engineered’ to reveal confidential information by a hacker without them realizing it.

The company reported that the hacker then proceeded to demand payment from the platform for not misusing the data and so the company decided to go to the police and also to make its users aware of the breach instead of making payments to the hacker.

“We owe it to our customers to be transparent and act with integrity,” Robinhood’s Chief Security Officer Caleb Sima said. “Following a diligent review, putting the entire Robinhood community on notice of this incident now is the right thing to do.”

The company also reported that no social security numbers or phone numbers were leaked and also assured that no client suffered any kind of financial loss but the fact that this happened in such a large platform says that the users, as well as the business, needs to be very careful about the data that is being stored at their end. There are thousands of ways where data can be stolen and with the whole world moving towards being digital, it increases the threat of cyber hacks even more in the coming years and it is important that companies and their employees be sensitized about the same. The dangers and the risks need to be handled appropriately so that the users can trade with the platform in an assured manner.

Read this next

Retail FX

ThinkMarkets expands CFDs lineup to over 4000 ETFs and shares

ThinkMarkets has expanded its service offering by incorporating 2500 new CFDs on shares and ETFs on its ThinkTrader platform.

Retail FX

France regulator warns investors of Omega Pro,

France’s financial markets regulator alerted investors that scams related to Omega Pro Ltd are beginning to circulate, with the blacklisted firm capitalizing on the situation to run a range of “unrealistic” offers.

Digital Assets

Web3 platform Grand Time paid $2 million in token earnings to date

Community-driven Web3 platform Grand Time said its offering – which includes a multifaceted platforms and its native token – has been gaining significant traction highlighted by impressive operational metrics.

Institutional FX

FX volumes at MOEX halved in April as ruble gains gorund

Currency trading at Moscow Exchange (MOEX) halted its upward route in April as monthly volumes nearly halved from a month earlier.

Digital Assets

FTX US adds stock trading, fractional shares to crypto platform

FTX US, the American subsidiary of crypto exchange FTX has kicked off stock trading feature to its customers in an effort to compete with popular platforms such as Robinhood and eToro.

Industry News

UK FCA empowered to remove brokers’ permissions in 28 days

Businesses with permissions they don’t need or use, risk misleading consumers. These new powers will enable us to take quicker action to cancel permissions that are not used or needed.

Industry News

CFTC charges $44m Ponzi scheme but millions may have fled to foreign crypto exchange

The CFTC alleged that defendants transferred millions of dollars to an off-shore entity that, in turn, may have transferred funds to a foreign cryptocurrency exchange. None of these funds were returned to the pool.


Saxo Bank deploys Adenza to address Basel and EBA requirements

The integration of ControllerView will enhance Basel-driven capital calculations and reporting at Saxo Bank in support of the bank’s multijurisdictional capital and liquidity reporting requirements throughout Denmark, Switzerland and UK, with plans to expand into the Netherlands.

Executive Moves

ComplySci appoints CTO, CPO, and CLO to further regtech’s product expansion

ComplySci offers compliance software used by more than 1400 global institutions to identify risk and address regulatory compliance challenges.