One or more attackers gained access to the client records of the Robinhood exchange platform, allowing them to view the private data of millions of people. According to the business, the intrusion has been controlled, and the criminal justice system is currently investigating the situation.
Robinhood has been the victim of yet another assault, as the company announced on November 8 that it had encountered a breach of security. The security breach happened on November 3, after an unlicensed third party acquired access to a specific quantity of private details for a percentage of Robinhood’s clients. Per the company, the assault has been controlled, and no information or financial damage has been reported as of the moment of the notification.
As stated in the team’s blog post, the illegal individual employed social engineering to get access to various client service systems through the use of a customer service representative. In the aftermath, the attacker acquired access to the email accounts of five million users, as well as the complete identities of two million others. However, the information was published on a far smaller scale, as only 310 people had their information revealed, with around ten users having significantly more information exposed.
After the assault had been controlled, Robinhood discovered that the hacker had attempted a ransom by requesting money after the incident had been contained. The appropriate authorities have been alerted, and an inquiry is now ongoing. Caleb Sima, the Chief Security Officer for Robinhood, confirmed that the clients had been alerted.
Robinhood’s Image Continues To Be Tarnished In The Public Eye
That the famous trading platform has been subjected to a security breach in the past only adds to its difficulties as a result of this and previous instances, which have damaged its reputation further. In 2019, the platform experienced a significant data breach as a result of credentials being kept in plaintext on the server.
Robinhood decided to go public previously this year, and its shares soared during the initial public offering (IPO) but plummeted afterward. Despite situations like the GameStop scandal, Robinhood has maintained its position as a popular investment option for many people. When compared to traditional investing platforms, the application has hit a chord with youthful users, who like the slick layout and ease of use provided by the app.
The number of market participants in early 2021 increased by 600% as compared to the 4th quarter of last year. Robinhood’s cryptocurrency revenue decreased from the second quarter to the third quarter of 2021, despite the company’s total growth statistics improving significantly.