Robinhood stock drops after hackers stole info on 7M users


Shares of no-fee buying and selling app Robinhood dropped greater than 3 % in premarket buying and selling Tuesday after the company disclosed that hackers made off with the personal info of greater than 7 million users final week in a serious knowledge breach.

Robinhood announced Monday evening that the hackers took the e-mail addresses of about 5 million users and the complete names of one other roughly two million.

The culprits additionally uncovered more-extensive personal info, together with identify, date of beginning and zip code, for about 300 of the users, the company stated.

No Social Security numbers, checking account numbers or debit card numbers had been uncovered within the breach and no prospects have truly lost any money consequently, Robinhood insisted.

“We are in the process of making appropriate disclosures to affected people,” the company stated.

Robinhood stated it has contained the hack, which passed off on Nov. 3, however that the cybercriminals have demanded a ransom fee.

The company stated it’s working with regulation enforcement and cybersecurity agency Mandiant to analyze the incident.

The hacker gained entry to Robinhood’s buyer help techniques by tricking an worker in a cellphone name, the company stated.

According to the buying and selling app Robinhood, hackers managed to steal 7 million users’ personal info.
Patrick Sison/AP
Robinhood co-founders Baiju Bhatt (left) and Vlad Tenev(proper) attend Robinhood Markets IPO Listing Day on July 29, 2021.
Cindy Ord/Getty Images

“As a Safety First company, we owe it to our customers to be transparent and act with integrity,” Robinhood chief safety officer Caleb Sima stated in a press release.

“Following a diligent review, putting the entire Robinhood community on notice of this incident now is the right thing to do.”

Shares of Robinhood had been greater than 3 % decrease on Tuesday morning, buying and selling at $36.78 per share as of 8:45 a.m. ET.

Robinhood beforehand warned in disclosures with the Securities and Exchange Commission that as a result of COVID-19 pandemic there may be an “increased risk that we may experience cybersecurity-related incidents as a result of our employees, service providers and other third parties working remotely on less secure systems and environments.”

According to the stockmarket, Robinhood shares dropped 3 % in premarket buying and selling.
Smith Collection/Gado/Getty Images

In the identical July submitting, Robinhood disclosed that New York’s Department of Financial Services was investigating the company’s cybersecurity practices and located violations of state necessities at its cryptocurrency arm.

Robinhood stated it reached a settlement with the state regulator and anticipated to pay a $30 million penalty.