Robinhood (NASDAQ) announced Monday that its mobile app digital platform Robinhood suffered a security incident on Wednesday Nov. 3, affecting over 7 million users. Robinhood stated that it had contained the attack and its investigation revealed that no financial, held or social security numbers were stolen.

A hacker hacked into Robinhood’s customer service representative by telephone. Social engineering techniques were used by the attacker to gain unauthorized access various client databases and customer support systems. In a separate data set, the scanner download a data panel that contained email addresses of five million people and full names for two million others.

“As a Safety First company, we owe it to our customers to be transparent and act with integrity,”
Caleb Sima is Chief Security Officer of Robinhood.

“Following a diligent review, putting the entire Robinhood community on notice of this incident now is the right thing to do.”
Robinhood’s information security team revealed that the hackers sent a communication demanding an extortion fee after the cyber threat had been contained. Robinhood has not confirmed that they paid ransom but did make contact with law enforcement officers. They have also engaged the assistance of an international security firm to assist with their ongoing investigation.

To The Flipside

• Robinhood’s stock (HOOD) closed down nearly 3.5 percent following the news, the broader market was only down 0.3 percent.

Why you should care

Robinhood users should contact support as soon as they can. Many accounts were hacked and more details stolen. Make sure you weren’t one of those individuals.

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