Home > Robinhood shares dip after data security breach revealed

Robinhood shares dip after data security breach revealed

The shares of Robinhood are down by 3.6% after a security breach that compromised more than five million customer emails.

The shares of brokerage platform Robinhood are down by more than 3% during Tuesday’s pre-trading session after reports of a data security breach emerged earlier today. In a blog post earlier today, Robinhood announced that it had experienced a data breach.

The company said the attack took place on 3rd November as an unauthorised party obtained access to a limited amount of personal information for some of its customers. Robinhood added that;

“Based on our investigation, the attack has been contained, and we believe that no Social Security numbers, bank account numbers, or debit card numbers were exposed and that there has been no financial loss to any customers as a result of the incident.”

The popular stock and cryptocurrency trading broker said the attacker obtained a list of email addresses for approximately five million people. The unauthorised party also obtained the full names of a different group of approximately two million people.

In addition to these, the attacker(s) was able to gain additional personal information, including name, date of birth and zip code for 310 of Robinhood’s customers. The hacker had demanded payment, but Robinhood didn’t reveal whether it had made the payment or not.

The brokerage platform said it had alerted law enforcement and continues to investigate the event with the help of Mandiant, a leading outside security firm. The shares of Robinhood rallied yesterday, rising by more than 2.6%.

However, HOOD is down by 3.19% so far today as investors start to dump the stock before the United States market opens in a few hours. Robinhood is one of the leading brokerage platforms in the cryptocurrency space.

The brokerage platform allows users to trade a wide range of cryptocurrencies, including Bitcoin, Ether, Litecoin and more. Robinhood has been launching numerous features in recent months to attract more cryptocurrency investors and traders.

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