What You Need to Know
- On Nov. 3, hackers gained access to data from more than 7 million Robinhood customers.
- Robinhood’s customers face a lifetime risk of identity theft due to the firm's failure to safeguard data, the suit maintains.
- The brokerage says no Social Security numbers, bank account numbers or debit card numbers were exposed.
Robinhood, a stock trading app, was hit with a class-action lawsuit Wednesday in California Northern District Court in response to a data breach that occurred Nov. 3.
The suit, filed on behalf of current and former customers, alleges that Robinhood failed to safeguard their personal information from hackers and that they face a lifetime risk of identity theft.
Robinhood allows customers to trade securities and cryptocurrencies on a mobile app.
On Nov. 3, hackers gained access to the personally identifiable information of over 7 million Robinhood customers, including full names, email addresses, dates of birth and ZIP codes.
Robinhood announced the data breach on Nov. 8.
At least since that date, the suit states, Robinhood has maintained a blog post on its website titled, “Robinhood Announces Data Security Incident.”
The blog post states, in part, that the data breach occurred late in the evening of Nov. 3, and that “an unauthorized third party obtained access to a limited amount of personal information for a portion of our customers.”