Robinhood, a popular investment app, announced that it suffered a data security breach in November 2021. This incident allowed the attackers to access personal information of millions of users.
Robinhood wrote in a blog that the “unauthorized party” gained access via social engineering to the customer support system.
Although the security threat was contained by the investment platform, attackers still had access to limited customer information.
Caleb Sima is Chief Security Officer at Robinhood.
“As Safety First companies, we owe our customers transparency and integrity. After careful review, it was decided that the Robinhood community should be notified immediately about this incident.
7 Million Customers Served
The investment app has many cryptocurrencies on its platform. It noted that hackers had successfully obtained email addresses of approximately five million customers following its investigations. Two million more users also had their full names stolen.
Robinhood estimates that approximately 310 customers had more information than their email addresses and names. The malefactors also had access to their zip codes, date of birth, and other details.
Additionally, 10 customers were able to see detailed information about their accounts being compromised.
Robinhood revealed that it was certain that the unauthorized person did not gain access customers’ bank account details, debit card and credit card information after its investigations. The incident did not result in any financial losses for its users.
Hackers demand ransom
The attackers demanded an undisclosed ransom from Robinhood in return for information.
The company stated that it did not comply with their demands and contacted the relevant law enforcement agencies to discuss the matter. Robinhood continues to work with Mandiant Security, a top security company, in the ongoing investigation.
Robinhood Not New: Tackling Robinhood
It is important to note that Robinhood has been attacked before. Nearly 2,000 people were affected by the compromise of Robinhood’s commission-free trading app last year.
Although attackers were able to access customers’ login details without the application, they were later able to siphon funds from the platform.
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