Robinhood trading app victim of massive data breach

Posted on Nov 9, 2021, 6:14 PM

A third of the users of the very popular Robinhood trading app have been victims of data theft. About 5 million email addresses have been sucked. To this, we must add 2 million accounts whose name holders have been obtained by hackers. The cyberattack even illegally recovered the name, date of birth and zip code of 310 people.

The incident on November 3 did not result in any financial loss for stock marketers, the Wall Street-listed company said. No bank account number or credit card number was revealed during this malicious act. Robinhood’s stock fell around 3% in the wake of the announcement.

95 billion outstanding

After containing the intrusion, the unauthorized third party blackmailed us to obtain a sum of money, explains Robinhood. We have informed the police and we are continuing to investigate the incident.. The broker did not indicate whether or not he had paid the requested amount.

The hacker managed to gain access to the computer systems of the online trading application by posing as an authorized third party during a telephone call to customer service. This service was set up after a cyberattack last year involving 2,000 accounts. Some Robinhood users at the time regretted not being able to call anyone within the company.

With over 22 million accounts and customer accounts of $ 95 billion, Robinhood is a prime target for hackers. Before its IPO last July, the company had also warned of the increased risk of cyber attacks during the pandemic. Health measures and teleworking had forced its employees and service providers to use less secure systems.

In the sights of the market policeman

The Robinhood app allows its users to invest in the financial markets without commission. It is very popular with young people thanks to its playful aspect. The health crisis and the rise of cryptocurrencies have also boosted the activity of its users.

The broker is in the sights of the American financial market policeman. The head of the Securities and Exchange Commission (SEC) focuses in particular on the gamification of online trading and the algorithms that push young people to multiply transactions.

Another threat to Robinhhod: the SEC is considering an outright ban on the sale of order flow. This controversial practice of reselling client orders to market makers such as high frequency traders accounts for 80% of the platform’s revenue.

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