Robinhood Stock Sent Falling in Late Trading After Suffering Customer Data Breach

Shares of Robinhood Markets Inc (NASDAQ: HOOD) were sent lower in after-hours trading on Monday, after the popular trading app revealed it had suffered a data breach affecting millions of its users.

According to a blog post published late Monday afternoon, Robinhood announced that it had suffered a data breach on November 3 after a customer-support employee was deceived via telephone into giving a hacker access to Robinhood’s customer support systems. The unauthorized party then obtained access to the email addresses of about 5 million customers, and the full names of approximately 2 million users. Meanwhile, another 310 customers had even more personal information compromised, such as name and date of birth.

Robinhood assured that Social Security, bank account, and debit card numbers were not exposed in the data breach, and that none of its users have suffered financial losses as a result. The trading app also said that the hacker had demanded a ransom payment, but stopped short of revealing whether or not it paid the extortion, only adding that law enforcement has been made aware of the incident.

Information for this briefing was found via Edgar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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