Robinhood Users Accounts Were Hacked and Investments Liquidated

Some Robinhood users had their accounts hacked and investments liquidated, according to Bloomberg. The exact number of affected accounts, however, could not be determined. 

October 10, 2020 | AtoZ Markets – Popular trading app Robinhood, which offers a suite of tools aimed at making investing easy and comparatively cheap for the uninitiated, said yesterday that hackers may have gained information about customers' personal email accounts, Reuters reported.

Per the report, Robinhood statement indicates that the company’s internal systems were not compromised and that they are “actively working with those impacted to secure their accounts.”

Robinhood customer accounts hacked, proceeds stolen

On Friday, Bloomberg reported that a number of Robinhood users had their accounts hacked in recent weeks, and they were unable to reach anyone at the company as the hackers liquidated positions and stole the proceeds.

Bloomberg quoted several Robinhood account-holders who said they sought help from the brokerage, only to receive a response that stated:

"We understand the sensitivity of your situation and will be escalating the matter to our fraud investigations team. Please be aware that this process may take a few weeks, and the team working on your case won’t be able to provide constant updates."

At least one Robinhood user complained to federal securities regulators, Bloomberg reported, adding that the two agencies – the Securities Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) – declined to comment.

The recent data problem around customer emails is one of several technical woes that have occurred at Robinhood in recent years. As AtoZ Markets reported earlier this year, the brokerage went offline, sparking customer complaints and even lawsuits.

Read also: Is Robinhood App Reliable? Everything You Need to Know

Reuters reported last month that Robinhood increased its latest funding round from investors to $660 million, putting its valuation at $11.7 billion.

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