Robinhood Accounts Looted and No Customer Service to Call

Mish

Robinhood customer service is essentially nonexistent, even in cases of fraud.

Accounts Looted, Customers Watched Helplessly

Have a problem at Robinhood? Well, that's too damn bad. 

Robinhood might take 3 weeks to get back to you, even in cases of fraud in progress. 

Please consider No One at Robinhood to Call

It took Soraya Bagheri a day to learn that 450 shares of Moderna Inc. had been liquidated in her Robinhood account and that $10,000 in withdrawals were pending. But after alerting the online brokerage to what she believed was a theft in progress, she received a frustrating email.  

The firm wrote it would investigate and respond within “a few weeks.” Now her money is gone.

Pruthvi Rao, a Chicago software engineer, said his account was hit on Oct. 6. His bet on Netflix Inc. was liquidated and $2,850 was soon withdrawn. He said he’s sent more than a dozen emails to Robinhood’s customer support address, and that he even tried messaging some of the brokerage’s executives on LinkedIn.

Rao showed Bloomberg the same emailed response from Robinhood that Bagheri received. “We understand the sensitivity of your situation and will be escalating the matter to our fraud investigations team,” Robinhood customer service agents wrote them. “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 Blames the Users

“A limited number of customers appear to have had their Robinhood account targeted by cyber criminals because of their personal email account (that which is associated with their Robinhood account) being compromised outside of Robinhood,” a spokesman for the company said in an email. “We’re actively working with those impacted to secure their accounts.”

No doubt people had weak passwords. But it appears Robinhood had no controls preventing the change of critical information.

Financial institutions, including Robinhood, should have a two-stage authentication system to prevent such fraud, and it should work.

Two-stage authentication ought to be mandatory, not optional.

Rao claims to have setup two-stage authentication. If so, something went wrong.

I smell lawsuits.

Question of the Day

Should the SEC shut down this pathetic operation?

Mish

Comments (15)
No. 1-12
Eddie_T
Eddie_T

Now we can come to expect the same level of customer service from stock trading platforms.....that we've always enjoyed with the crypto exchanges. LOL.

Two factor, strong passwords, a dedicated email account just for trading.

And some reasonable suspicion on the part of gullible people.....everyone should be smart enough by now to spot phishing attempts.

These people being robbed work in tech? Really? Software engineer? Really?

Sechel
Sechel

I'm surprised FINRA and SEC are not involved. This will be a class action lawsuit. If Robinhood was notified and failed to act and was shown to be negligent I expect they lose. The clients need to make legal claims. Again I'm gobsmacked that FINRA and the SEC are silent on this

Sechel
Sechel

I expect we will be hearing from regulators soon. No comment probably means active case

Finra and the SEC declined to comment.

Sechel
Sechel

My prediction based on a quick search is they get shut down. They clearly lack internal controls.

Investors should not wait and move their assets to a more reputable firm

Bam_Man
Bam_Man

Nobody could have possibly seen this coming.
Game Over. Thanks for playing. Have a nice day.
LOL....

Doug78
Doug78

I wouldn't touch Robinhood with a 3.048 meter pole. It's a machine to generate lawsuits.

Maximus_Minimus
Maximus_Minimus

Platform named after a famous robber - check
No commissions for stock and ETFs - check
Email support outsourced - check

What could possibly go wrong?

Casual_Observer
Casual_Observer

Was this only for those holding bitcoin inside their accounts ? Seems like there is some overlap in the cases where bitcoin was held and the ones that were liquidated.

PecuniaNonOlet
PecuniaNonOlet

Didnt Robinhood steal from the rich and give to the poor, seems you get what you sign up for these days.

WeGotThemGuns
WeGotThemGuns

The hackers hit my accounts with them to on 0ct6

KidHorn
KidHorn

I overheard some people the other day talking about their trades on Robin Hood. They invested in 1 share of Google and made $20 or so. Thought they were geniuses. Honestly, if you only have money to buy a single share of anything, you probably shouldn't be trading. One bad day can get you evicted.


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