An attacker compromised the Robinhood trading platform customer database, gaining access to the personal information of millions of users. The attack has been contained, the firm says, and law enforcement is conducting an investigation.
Robinhood has suffered yet another incident, as it revealed on Nov 8 that it had experienced a security breach. The data breach occurred on Nov 3, after an “unauthorized third party obtained access to a limited amount of personal information for a portion of our customers.” The firm says that the attack has been contained, with no data or financial loss recorded at the time of the announcement.
The team’s post says that the unauthorized party used social engineering to obtain access to certain customer support systems via a customer support employee. Following this, the attacker gained access to the email addresses of five million customers and the full names of two million customers. A much smaller group of 310 people had more information revealed, with approximately ten customers having much more data leaked.
Robinhood also revealed that the attacker has made an attempt at extortion, asking for payment after the attack had been contained. Law enforcement has been contacted, with an investigation underway.
Robinhood Chief Security Officer Caleb Sima said that the victims had been notified,
As a ‘Safety First’ company, we owe it to our customers to be transparent and act with integrity. Following a diligent review, putting the entire Robinhood community on notice of this incident now is the right thing to do.
Robinhood continues to take reputational hits
This is not the first time that the popular trading platform has suffered a data breach, adding to its woes as it suffers from reputational hits for this and other incidents. The platform suffered a major breach in 2019 — which was a result of passwords being stored in plaintext.
Robinhood went public earlier this year, with its shares surging with the IPO but dropping considerably after. Despite such incidents as the GameStop controversy, Robinhood continues to remain a popular choice for investors. The app has struck a chord with young investors, who appreciate the sleek interface and ease of use as compared to legacy investment platforms.
The number of crypto traders in early 2021 grew by 600% from Q4 last year. Robinhood’s crypto revenue dropped from Q2 to Q3 2021, though overall growth metrics made a healthy improvement.
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