Suing Robinhood – Again


Robinhood is back in the middle of a 2K account hack scandal

  • The Robinhood hack has grown significantly

  • The nature of the vulnerability has not yet been announced

  • Users complain about slow service support

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Popular American fintech startup, simplified investing is again under fire, this time for a major account hack

American fintech startup Robinhood has been in the spotlight due to an alleged major hack of the site’s accounts. According to Bloomberg, referring to an anonymous source associated with the investigation inside Robinhood, the scale of the hack significantly exceeds the initial statements of the service representatives..

According to the source, the number of hacked accounts reaches two thousand. What exactly is the hack connected with remains unknown.

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The amount claimed differs significantly from the first Robinhood claims.

Robinhood is at the center of a scandal again ...

Earlier, the startup admitted the fact of unauthorized withdrawals from user accounts, but announced a “limited number” of affected customers. At the same time, Robinhood said that the incident may be associated with insufficient security of users’ email, as well as the lack of two-factor authentication..

However, victims’ testimonies differ significantly from Robinhood’s claim..

Coordinated attack

One of the victims, Lena Williams, stated that she did not find any unauthorized access to her email, moreover, she had two-factor authentication installed. However, this did not help protect against cybercriminals who had withdrawn funds from her account..

Another victim, Mia Laino, noted that two-factor authentication initially blocked access to the attacker..

Robinhood is at the center of a scandal again ...

Due to the notification about the hacking attempt, Laino followed Robinhood’s instructions and decided to block access to the account for a while. She later found out that despite the password change and account freeze, someone had managed to sell all of her shares..

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Victim contacted Robinhood support by mail, but never received a response.

Robinhood is at the center of a scandal again ...

A few days later, Laino noticed in her shopping cart that someone had access to her email and was intercepting all messages from Robinhood..

Later, representatives of Robinhood contacted Laino, claiming that the attacker had forged documents proving her identity to unlock the account. The forgery contained Laino’s contact information, but a photograph of the other person, and a font that did not match official Arizona IDs. However, this did not stop the fraudster from withdrawing all funds.

Subscriber out of range

This is not the first time that a well-known fintech startup with a valuation of over $ 11 billion has been in the spotlight due to inadequate security measures. Robinhood has been criticized for the lack of a hot tech support number, which many victims believe is responding too slowly online, which has already led to the theft of at least $ 20K.

On moment of writing Robinhood did not comment on the incident..

In early September, The Wall Street Journal announced that Robinhood was willing to pay more than $ 10 million in penalties to the US Securities and Exchange Commission (SEC) in a case of selling orders to high-frequency traders. At the end of March 2020, Robinhood was convicted of wanting to “buy” clients’ refusal of lawsuits for $ 75 due to financial losses of clients associated with repeated platform failures.

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