Robinhood Reports Data Breach and Extortion Payment Demand

November 9, 2021

The stock trading platform Robinhood Markets reported that it experienced a data breach on Nov. 3 that could potentially affect the email addresses of about five million customers and personal data of others.

The hackers demanded an extortion payment. Robinhood said it has informed law enforcement and is continuing to investigate the incident with the help of Mandiant, an outside security firm.

The broker said the unauthorized party “socially engineered a customer support employee by phone and obtained access to certain customer support systems” and obtained a list of email addresses for approximately five million people, and full names for a different group of approximately two million people.

The California-based company also believes that additional personal information, including name, date of birth, and zip code, of about 310 people was exposed, with more extensive details of a subset of approximately 10 customers being revealed.

The firm said it believes the attack has been contained and that no Social Security numbers, bank account numbers, or debit card numbers were exposed and that there has been no financial loss to any customers as a result of the incident.

The company said it is making appropriate disclosures to affected people.

Robinhood offers commission-free trades of stocks, exchange-traded funds and cryptocurrencies via a mobile app introduced in 2015.

Topics Cyber

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