According to a Thursday Bloomberg report, hackers compromised around 2,000 Robinhood Markets accounts, indicating the security breach was more widespread than previously thought.
Earlier last week, several Robinhood users came out claiming that their accounts had been compromised. The trading app downplayed the incident, claiming that it only affected a “limited number” of user accounts.
Additionally, a Robinhood spokesman claimed that the vulnerability was from the clients’ side and that users should turn on two-factor authentication to help protect their finances.
This claim was refuted after several victims of the hack revealed that there was no evidence of hackers infiltrating their email accounts. Some affected clients even stated that they had set up two-factor authentication, further strengthening the case that the hackers infiltrated the accounts from inside Robinhood’s platform.
Bloomberg has now revealed that the hack was more extensive than earlier reported, with almost 2,000 accounts infiltrated. The hackers took over user accounts and liquidated their positions before stealing the proceeds.
Many users claim the bad actors liquidated funds via online app Revolut, a matter currently under investigation by the payments provider.
Although the exact details of the attack remain unknown, it seems that the latest hack could turn out to be the largest in Robinhood’s history.
Robinhood Blasted For Its Handling of Hack Incident
Millennials’ favorite investing platform Robinhood is under heavy scrutiny over its handling of the latest security breach to user accounts. The incident was particularly devastating since the attackers stole access to brokerage accounts and liquidated massive amounts of user investments.
Citing an anonymous whistleblower, Bloomberg revealed that the popular trading app had received complaints of missing funds from user accounts even earlier than last week. The Report claims that Robinhood took more than two weeks before admitting that numerous accounts had been compromised.
For instance, Robinhood’s client, Soraya Bagheri lamented the loss of 450 Moderna Inc. shares when hackers infiltrated her account. After notifying Robinhood’s support of the stolen funds, the team’s only response was that they would investigate and get back to her within “a few weeks.”
The trading app now faces a deluge of complaints and criticism from social media for its handling of the incident. The popular brokerage platform, which boasts over 13 million users and an estimated valuation of $11.7 billion, still has no emergency customer service phone number.
The Trading Platform Faces Scrutiny Over March Outages
Robinhood has seen an increase in day trading on its platform during the Covid-19 pandemic but has experienced inconvenient snafus that often threaten to jeopardize users’ deals.
Back in March 2020, Robinhood experienced a series of outages that caused thousands of dollars in losses and saw the platform temporarily cease operations.
According to Bloomberg, the SEC has reportedly launched an investigation with the Financial Industry Regulatory Authority to look into how the platform handled the March outages.