Popular stock trading and investment app Robinhood has suffered a security breach. After an investigation, the company found that more than 2,000 Robinhood Markets accounts may have been compromised by hackers, according to a report by Bloomberg.
Reports of the hack originally appeared last week, but Robinhood has been cagey with its reaction. It was admitted that customers were targeted in limited numbers, according to officials, but it is also alleged that accounts were accessed through external email addresses unrelated to Robinhood. The cyber criminals then used the email addresses to gain access to user accounts at Robinhood.
Investors using Robinhood have used social media to express their disdain for the looming security breach. Many complain that it was impossible to contact the company. Robinhood is considered by some to be the best trading app out there and has over 1
Many of the best accounting and finance packages require users to enable two-factor authentication for accounts, and this week Robinhood repeated those considerations. It is now advising Robinhood users to follow the same procedure, and account holders are also encouraged to read additional notes on security issues that the company is planning to post shortly.
Although the number of people affected seems to be relatively high, many Robinhood users have indicated that there is very little evidence that their accounts have been breached. Some users have reported losing money while others are unable to check their trade balances after they appear to have been banned from their accounts.
Demand for trading apps is growing particularly due to global bans, the ongoing coronavirus crisis, and the ease with which subscribers can get into the world of stocks and shares at home. Robinhood is currently valued at $ 11.2 billion, though it has not been without negative press in recent times.
Most notably, in June there was the suicide of a 20 year old student who had amassed a large negative balance with a Robinhood account. The tragedy drew criticism of the ease with which young traders could get into financial hot water. The company has since announced that it will enroll more financial services advisors to train inexperienced users and improve public awareness of potential pitfalls.