Massive breach at Robinhood has been reported, happening on Nov. 3rd 2021, affecting 7 million customers. Robinhood ($HOOD) best known for being the shitbags who took the ‘Buy’ button in January, saying it was to ‘protect’ retail investors, when current court documents show it was allegedly to protect themselves and Citadel Securities LLC from going bankrupt on a terrible bet against retail investors.
Safety First! seems to be something Robinhood continues to spit out as a bullshit excuse every time they somehow manage to fuck over their customers, whether allegedly on purpose or through sheer dumbassery. In this colossal fuck-up it does not appear that technology was at fault, it was social engineering. The only safety Robinhood seems interested in, is protecting themselves from the legal consequences of their actions or failures, which very much appear to harm retail investors.
From the Robinhood Blog – Socially Engineered :
“The unauthorized party socially engineered a customer support employee by phone and obtained access to certain customer support systems. At this time, we understand that the unauthorized party obtained a list of email addresses for approximately five million people, and full names for a different group of approximately two million people. We also believe that for a more limited number of people—approximately 310 in total—additional personal information, including name, date of birth, and zip code, was exposed, with a subset of approximately 10 customers having more extensive account details revealed. We are in the process of making appropriate disclosures to affected people.”
Will Robinhood customers flee?
Will Robinhood customers flee? given the exodus of customers after the ‘Buy’ button scandal which showed as a massive loss to Robinhood ($HOOD) on there earnings. It is likely to expect that existing customers will once again considering moving to different brokerages which offer more security and less legal entanglement, further harming the bottom line at Robinhood and Citadel Securities LLC.
Only time will tell how this will affect Robinhoods bottom line or how it will affect Citadel Securities LLC but it cannot be discounted that this news will undoubtedly cause the customer base to rethink their choice of broker.