Financial services company Robinhood Markets Inc HOOD reported a data security incident where the personal information of over seven million users was compromised.
What Happened: In a statement on Monday, Robinhood, which allows trading of stocks and cryptocurrencies on its platform, said that an unauthorized third party obtained access to customers' personal information late in the evening of Nov. 3.
The exploiter was able to gain access to customer support systems by “socially engineering a customer support employee by phone” said Robinhood.
The unauthorized party reportedly obtained email addresses of approximately two million users and full names of a different group of approximately two million users.
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“We also believe that for a more limited number of people—approximately 310 in total—additional personal information, including name, date of birth, and zip code, was exposed, with a subset of approximately 10 customers having more extensive account details revealed,” stated Robinhood.
“We are in the process of making appropriate disclosures to affected people.”
Robinhood said the exploiter demanded an extortion payment after it contained the intrusion. The trading platform said it is still investigating the incident in liaison with security firm Mandiant and has informed law enforcement of the events that transpired.
“Following a diligent review, putting the entire Robinhood community on notice of this incident now is the right thing to do,” said Robinhood Chief Security Officer Caleb Sima.
Price Action: Robinhood shares fell 3.4% to $36.69 during the after-hours session on Monday.
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