Robinhood Hack: Almost 2,000 Accounts Compromised by Hackers

A recent Robinhood hack has seen about 2,000 users accounts infiltrated, indicating the attacks were more widespread than previously realized, Bloomberg News reported Thursday.

October 16, 2020 | AtoZ Markets – Nearly 2,000 brokerage accounts on the Robinhood platform have been compromised in a hacker attack, according to Bloomberg. The cybercriminals managed to take control of clients' transactions and funds.

As AtoZ Markets reported last week, after the data of Robinhood users became public, the platform reported that the cyberattack affected "a limited number" of customers. However, everything seems to be much worse.

Robinhood's response on hacking

Citing a person with knowledge of an internal review, Bloomberg is saying that new facts have come to light during the investigation. Nevertheless, the company admitted that the hack attack affected many accounts, just two weeks after the incident.

The recent Robinhood hack attack has become the largest in the history of the company. What is more, customers who were affected claim to have turned on two-factor authentication (2FA).  Robinhood users complained that hackers liquidated their positions and stole the proceeds. When Robinhood is notified by a customer of potential fraud on their account, it restricts the account, investigates for unauthorized access, logs the user out on all devices and asks the customer to change their password, the spokesman said.

However, the company still did not provide full information on the number of victims. The spokesperson said that the company did not alert all of the customers, but only those affected.

One Robinhood user told AtoZ Markets that it is difficult to believe that the hack attack was not due to a breach in the company's systems, since his other accounts were not affected.

Is the Robinhood app reliable?

Per Bloomberg reports, other users are also experiencing difficulty contacting a company that does not have a support phone number. Robinhood's users are now accusing the company of a delayed response to fraud that could have been averted or at least mitigated.

Following the Robinhood hack attack, Social media saw a deluge of complaints from furious users calling to destroy Robinhood after the support team was incompetent to stop hackers from stealing funds. Helpless users watched how hackers withdraw money from their accounts, and Robinhood only sent them automatic letters.

Related: Is Robinhood App Reliable? Everything You Need to Know

“We always respond to customers reporting fraudulent or suspicious activity and work as quickly as possible to complete investigations," a Robinhood spokesperson told AtoZ Markets, adding customer accounts' security is the company's top priority.”

As a reminder, Robinhood has seen other snafus, including several outages in March and August that jeopardized users' deals.

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