Robinhood hackers reportedly gained access to 'almost 2,000' trading accounts

Vlad Tenev, co-founder and co-CEO of investing app Robinhood.REUTERS/Brendan McDermid
  • Robinhood users say they've faced a spate of attacks on their trading accounts in recent weeks
  • Bloomberg News reports that an internal review pegged the number of compromised users near 2,000.
  • The company, which has not disclosed a number, says security "is a top priority and something we take very seriously."
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Robinhood's latest growing pain is cyber attacks targeting its users.

Bloomberg News reported Thursday that hackers have gained access to "almost 2,000" trading accounts in the recent spate of attacks that have left users frustrated and, in some cases, with little recourse.

The number, a small fraction of the company's 13 million users, was revealed to Bloomberg by an unnamed source "with knowledge of an internal review" that came as the site reported on the attacks. At the time, Robinhood said a "limited number" of accounts had been compromised.
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In response, Robinhood this week sent a push notification through its app encouraging users to implement two-factor authentication.

"We always respond to customers reporting fraudulent or suspicious activity and work as quickly as possible to complete investigations," a spokesperson told Business Insider. "The security of Robinhood customer accounts is a top priority and something we take very seriously."

Robinhood, which pioneered commission-free stock and ETF trading, has seen its popularity explode in recent years, a trend only further galvanized by the Covid-19 pandemic. As of a September funding round, the startup was valued at nearly $12 billion.
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Read more: 'Robinhood investors should not be taking their retirement accounts to the Wall Street casino': Investing experts explain why stock picking is a zero-sum game and how to achieve market returns passively

But such growth hasn't come without speed-bumps. Critics have accused Robinhood of "gamifying" investing to the point that inexperienced clients can cause themselves substantial financial harm. This came to a head in June when a young options trader killed himself after seeing an extremely large negative portfolio value that was not reflective of his actual balance. The company's also butted heads with federal regulators. In 2019, the company launched checking and savings products, hawking them as fully insured accounts with sky-high interest rates. However, that wasn't completely true, and the company was forced back to the drawing board.
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App outages during volatile trading days haven't helped cool customer tempers, either.

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