Robinhood’s Data Breach Could Have Far-Reaching Financial Implications
Robinhood Markets, Inc. (NASDAQ: HOOD) shares have lost roughly half their value since early August. For many stocks, such a correction could suggest a buying opportunity, but other considerations, including the ongoing and very real threat of data breaches and a still sky-high valuation, suggest that investors should continue to exercise caution.
The highly-publicized November 3 hacking incident whereby criminals stole the email addresses of five million Robinhood users, the full names of two million others, and more complete data (name, DOB, and zip code) from 310 users, is an embarrassing breach. Moreover, the hacker is apparently trying to sell the information on the dark web, according to various news services The computer thief alleges the information stolen was richer in quality than Robinhood admitted. (The hacker says the complete personal information for 310 people is not presently for sale.)
The breach highlights perhaps an even more concerning issue for Robinhood.