The popular investment and trading app Robinhood has suffered a security breach. Following an investigation, the company discovered that more than 2.000 Robinhood Markets accounts may have been compromised by hackers, according to a Bloomberg report. Reports of the hack originally surfaced last week, but Robinhood was careful with its response. It admitted that the clients had been targeted, limited in number according to officials, but also claims that access to the accounts was gained using external email addresses unrelated to Robinhood. The cybercriminals then used the email addresses to gain access to user accounts on Robinhood. Investors using Robinhood have taken to social media to express their contempt for the ongoing security breach, with many complaining that the company cannot be contacted. Considered by some to be the best trading app, Robinhood has over 13 million subscribers.
Two factor authentication
Many of the best accounting and finance software packages require users to enable two-factor authentication on accounts, and this week Robinhood echoed that thought. It now advises Robinhood users to use the same practice, and account holders will also be encouraged to read additional tips on security issues, which the company plans to post shortly. While the affected numbers appear to be reasonably high, many Robinhood users said there were very few tell-tale signs that their accounts were breached. Some users have reported losing funds, while others are still unable to check their trading balances after they were apparently blocked from their accounts. The demand for trading apps is growing especially due to global lockdowns, the ongoing coronavirus crisis, and the ease with which subscribers can enter the world of stocks and shares at home. Robinhood is currently valued at $11.200 billion, though more recently it hasn't been without its negative press. Most notable was the suicide of a 20-year-old college student in June who had accumulated a large negative account balance with a Robinhood account. The tragedy sparked criticism of the ease with which young traders could get into financial trouble. Since then, the company has said it will recruit more financial services advisers to help educate first-time users and increase public perception of potential dangers.