Robinhood Raises Cybersecurity Awareness After Insider Says 2,000 Accounts Exposed in the Hack
About 2,000 of trading app Robinhood accounts were compromised in a recent hack that stole customer funds.
The popular online brokerage service also offers trading of limited cryptocurrencies, previously said that cybercriminals targeted only a “limited number” of customer funds. The service in itself wasn't hacked, but users’ personal email accounts were compromised, which were used to gain access to customers’ Robinhood account, it has been said in a statement.
But a person with knowledge of an internal review told Bloomberg the estimated figure, a sign that attacks have been more widespread than previously believed.
Users complained on social media as the brokerage service with more than 13 million accounts does not have a customer service phone number. The company said in a statement,
“We always respond to customers reporting fraudulent or suspicious activity and work as quickly as possible to complete investigations.”
The company is now sending push notifications to users to enable two-factor authentication on their accounts and is further planning to send customers more security advice.
Cybersecurity awareness is key to ensuring your safety and security 🔐
Let’s go over the best ways to help protect your Robinhood account.
— Robinhood Help (@AskRobinhood) October 15, 2020
However, several victims said their brokerage accounts were accessed despite having set up 2FA, while others said they found no sign of their email compromising.
“Unfortunately, it’s a common occurrence that online accounts of monetary value are bought, sold and traded by cyber-criminals,” said Mark Arena, CEO of Intel 471, which monitors activities of digital criminals.
“This shows the importance of people practicing common information-security hygiene such as not re-using the same password across multiple accounts and enabling two-factor authentication, which Robinhood supports.”
Menlo Park, California-based Robinhood was founded seven years ago, exploded in popularity this year as millions of Americans, including millennials stuck at home, took to making money from stock prices swinging. They put their stimulus money into the stock market that sent it flying.
But at the same time, the no-fee brokerage app has attracted consumer complaints and faced the SEC probe.