Hackers compromised approximately 2000 Robinhood Markets customers’ online trading accounts via credential stuffing attack. The fintech startup says it is investigating the hack.
Fintech startup Robinhood Markets and its customers recently became a victim of a cyberattack where hackers compromised nearly 2000 customer accounts. The company was targeted earlier this month and confirmed a limited number of customers were affected.
Account owners discovered the hack when their stock holdings were being sold off, which means the hackers got complete access to the accounts.
A Robinhood customer told Finance MagnatesOpens a new window , “My Robinhood account was also hacked. I received a bunch of notifications that all my stocks were sold. Shortly after, I received another notification that $—- was withdrawn by a company (I don’t recall the name except for the last part of it was ‘digital’) I can no longer access my account and I’m not even able to reset my password to get access to the account again because nothing is coming through my email from them. I’ve sent an email to them but I’ve yet to hear back.â€
To make matters worse, customers could not get in touch with Robinhood, which lacks a dedicated customer support line. Those who could reach over email noticed that the company’s responses were moved to trash, indicating a compromise of emails as well.
A Robinhood spokesperson told InvestopediaOpens a new window , “A limited number of customers appear to have had their Robinhood account targeted by cybercriminals because of their personal email account (that which is associated with their Robinhood account) being compromised outside of Robinhood. We’re actively working with those impacted to secure their accounts. This was not stemming from a breach of Robinhood’s systems.â€
See Also: Observing Cyber Hygiene Isn’t Hard. Here’s What to Do
Customers found Robinhood’s email response very unsettling. It goes, “We understand the sensitivity of your situation and will be escalating the matter to our fraud investigations team. Please be aware that this process may take a few weeks, and the team working on your case won’t be able to provide constant updates.†Robinhood is also issuing reminders to action security by urging to set up two-factor authentication, verify personal information and create stronger passwords via push notifications.
The Robinhood incident highlights how credential stuffing attacks are on the rise. According to the United States Securities and Exchange Commission (SEC), credential stuffing is “a method of cyber-attack to client accounts that uses compromised client login credentials, resulting in the possible loss of customer assets and unauthorized disclosure of sensitive personal information.â€
Earlier in September, the SEC issued a warning Opens a new window against “an increase in the number of cyber-attacks against SEC-registered investment advisers and brokers and dealers using credential stuffing.â€
“Unfortunately, It’s a common occurrence that online accounts of monetary value are bought, sold and traded by cyber-criminals,†Mark Arena, CEO of Intel 471 told BloombergOpens a new window .
Arena adds, “[The attack] shows the importance of people practicing common information-security hygiene such as not re-using the same password across multiple accounts and enabling two-factor authentication, which Robinhood supports.â€
Tips to maintain cyber hygiene to mitigate credential stuffing attacks:
- Don’t share account credentials with anyone
- Use antivirus programs on the computer from where the account is being accessed
- Avoid using a public computer to access financial information and accounts
- Ensure the web connection is secure and encrypted, with an ‘https://’ preceding the actual web address
- Use tools such as VPN
- Create and maintain two-factor authentication
Currently, Robinhood customers are still awaiting account restoration.
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