Robinhood Slips as Hack Exposes Millions of Names, Email Addresses

By Dhirendra Tripathi – Robinhood stock (NASDAQ:) traded 3.2% lower in Tuesday’s premarket a day after the trading app revealed a security breach compromising some users’ information.

The incident occurred on November 3 and the breach has since been “contained”, the company said.

Robinhood said no Social Security numbers, bank account numbers, or debit card numbers were exposed and that none of its customers have suffered any financial loss.

The breach exposed the email addresses of about 5 million users as well as the full names of 2 million more. The company said that more detailed information regarding a small number of accounts had also been stolen, after an unauthorized party managed to manipulate an employee on a phone call to gain access to customer support systems.

Robinhood said it has informed law enforcement and continues to investigate the incident with the help of cybersecurity firm Mandiant (NASDAQ:).

The news comes only a couple of weeks after a report by the Securities and Exchanges Commission into this year’s ‘meme stock’ rally was critical of Robinhood’s business model, which depends on the sale of its customers’ order flow data to hedge funds.

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