Link to join StockHub free investing discord server: Application form to apply & try and get in my Private Stock Group/Financial Fortress
Well guys it was just five days and 22 hours ago that i post a video on the main channel basically talking about how the robinhood app was being hacked and some people were basically having their accounts looted essentially okay and at that time it sounded like it was just a few people or maybe like a handful of people something like that until just a few hours
Ago the truth came out and this is way more widespread than it was previously thought robin hood hackers reportedly gained access to almost 2 000 trading accounts this is on a way bigger scale than any of us had previously thought like almost 2 000 trading accounts look at this robin hood users say they 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 nearly 2 000 nearly 2 000 their company which has not disclosed a number says security is a top priority and something we take very seriously okay in this video here today we’re going to talk about the facts what’s come out about this what are we looking at i’ll talk about
My opinion on all this and i’ll talk about what you should do if you’re a robin hood user or somebody thinking about using the robinhood app hope you guys enjoy this video as always it’s not the most happy video in the world but if you don’t mind please still smash that thumbs up button because basically that helps in the algorithm and that will help this video
Get spread more and more so more and more people know what the heck is going on with robinhood the more thumbs up we get the more it will spread in the algorithm and obviously it’s it’s better that this information gets out because this is a big deal guys we’re talking about 2 000 people now okay robin hood’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 which by the way 2 000 is still a lot of people okay that’s a you know think about that on an individual
Basis like 2 000 people was revealed to bloomberg by an unnamed source with knowledge of an internal review that came as the site reported on the text at the time robin hood said a limited number of accounts have been compromised man limited number it does sound like it’s just a few like when i hear a limited number i think oh maybe like five or ten people were
Affected or something like that probably like less than 20 right 2 000 people i mean that doesn’t sound like a limited number to me that sounds like a very large number let’s just put it that way in response robin hood this week sent a push notification through its app encouraging users to implement two-factor authentication now this is interesting okay why well
In that video basically what we read was some of those users that basically were hacked in this whole scenario some of those had two factor authentication on so i’m a little confused like is this really going to fix the problem does this help a little bit does it help a lot because like like we talked about like some of those users said they had this on and
Their accounts were still like basically taken to zero and the money was moved out of them so this is you know it’s strange let’s put it that way okay robin hood what do they have to say they say we always respond to our customers reporting fraudulent or suspicious activity and work as quickly as possible to complete investigations a spokesperson told business
Insider the security of robin hood customer accounts is a top priority and something we take very seriously okay hmm it’s a little confusing okay because customers don’t agree with this that’s just the honest truth okay i read through the comments and i’ve just kind of seen what’s happened with robin hood over the years customers don’t agree that your customer
Services is top priority or security is top priority you guys have no phone line customer support it’s like if a user also in their accounts hackers it’s not like they can call and be like no there’s no customer support on a phone line that’s ridiculous okay and what we heard from tons of these folks is basically they get a generic email sent out to them that’s
Like oh we’ll look into this it’s going to take a few weeks things like that like that’s just not cutting the muster like imagine you log into your robinhood account and you got let’s say ten thousand dollars in it and all of a sudden all your your stocks have been sold and also now you got zero dollars at it like you know that’s just not good enough it’s not good
Enough to not be able to get on a phone and talk to somebody about this and basically just have a generic email says oh we’re gonna look into it it’s gonna take a few weeks uh we take this very serious like that’s it just doesn’t cut the mustard i don’t know you know what robinhood’s doing but it’s just not cutting the mustard okay and what makes it all way way
Worse is a company has an 11.2 billion dollar valuation on it it’s not like this is some like small mom and pop shop they’re like oh man i don’t know if we can make it i don’t know if we can afford to have some some folks on customer support for situations like this no the company has an 11.2 billion valuation the company every time i snap my fingers oh they
Just raised another 100 million 100 million 100 million 100 million oh my gosh this company raises money left and right there’s no shortage of money for robinhood let’s put it that way look at this i mean 600 are like oh they just raised 320 million oh they just raised 600 million oh they just raised a cool 660 million it’s ridiculous guys these guys you know
They just i snap my finger they raise 100 million dollars it’s ridiculous okay there’s no excuse for what is going on robin hood and then you see things like this their order flow revenue business right which is pretty controversial the revenue there are surged in recent years like up hundreds of percent okay and selling your order flow what is that all right
In the financial markets payment for order flow refers to the compensation that a broker like a robin hood or one of these other brokers out there receives not from its client but from a third party that wants to influence how the broker routes client orders for fulfillment it’s a controversial practice that has been called a kickback okay so you’re looking
At all this and you’re saying what the heck robinhood get it together like you guys raise hundreds of millions of dollars whenever you want you got an 11.2 billion dollar valuation on it you’re selling our order flow left and right and your revenue is going crazy and we have to do with this like what is this man what is this like come on okay the company also
Butted heads with federal regulators in 2019 the company launched checking in 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 you see things like this and it’s just like what are you doing robin hood okay never mind all the app out just
Remember the app outages like i remember hearing about that like crazy in march april and for me as a long-term investor you know if my brokerage was go to go down for an hour or something like that it’s not the end of the world although i gotta say i don’t think i’ve ever seen fidelity like go down in the middle of a trading day or something like that but i could
Definitely understand like robin hood users being super mad i mean imagine you’re trying to sell out a position and you go on you can’t even do it or you’re trying to buy on a huge dip or something in a stock and you can’t even do it like that could end up costing you hundreds of dollars thousands of dollars tens of thousands or more depending on how much money
You’re putting in it that’s just ridiculous and that’s just unacceptable it’s all unacceptable no doubt about it okay look at this hackers look to buy brokerage logins on the dark web with robinhood fetching the highest prices why is that like why do you think robin hood accounts are fetching the highest prices you gotta ask yourself this okay dozens of brokerage
Logins are for sale on the dark web with portfolios ranging from the low thousands to a half million dollars according to a security analyst and listing seen by cnbc robinhood accounts tend to list at higher prices which analysts say might suggest hackers view these accounts as easier to break into oh isn’t that interesting okay and yeah if i was a bad guy and
I was trying to steal money out of people’s accounts on the dark web okay i can tell you i’d want to go to wherever it is easiest because wherever it’s easiest you have the best chance of getting away with it okay i remember we i when i worked at quick trip right quick trip i started as an overnight assistant manager okay and as far as quick trip went they did a
Lot of things for security that made it so if you wanted to come in and try to like you know rob the store probably wasn’t that good a decision like the store was unbelievably lit like super bright we had cops come in all the time because we offered them free drinks the store had wide open views there’s cameras everywhere it’s like if you’re thinking about doing
Something you’re not as likely to try to come and do that quick trip you’d much rather go to that dark decrepit gas station across the street because you’re probably going to get away with it and you know things won’t happen right and here you have robin hood whereas if you’re a bad guy you’re looking at this you’re like hmm should i try to attack customers over
At this brokerage or that brokerage that might have phenomenal security or maybe go over to robinhood hmm that’s interesting right think about that for a minute okay now my question is this okay why put up with all this robin hood drama like why put up with it every time we look around there’s something going on with this robin hood 2000 accounts hacked now that
We’re we’re hearing about right you had the app going down you had them basically saying oh yeah we’re coming out with this checking account savings account and acting like it was insured then people were like well it wasn’t really insured the way people thought it was you always are coming up with these different things that that’s going on with robin hood all
The time and it’s like why the heck put up with all this drama everyone places trades for free nowadays back in the day i fully understand it like back in the day like when i say back in the day i mean like two or three years ago in 100 made sense if you had a small amount of money to go with robin hood because robin hood had free trades and back then everybody
Was charging like five dollars per trade so if you’re investing a small amount of money of course go to robin hood everybody’s basically out there that’s a main brokerage now basically let you place your trades for free okay fidelity investments zero dollar commission trades and no fees okay td ameritrade zero dollar commissions e-trade zero dollar commissions
On stocks options and etfs they all offer zero dollars now it’s not like you know robin hood used to have a competitive advantage basically being zero dollars all these guys are zero dollars now okay there’s no competitive advantage and guess what all these other players have been in the market for way longer than a robin hood right they all have phone numbers
You can call isn’t that phenomenal imagine if something happened your account you can actually get on the phone and talk to somebody and get some like reassurance and some confidence that the situation’s gonna be handled e-trade there’s their number right there td ameritrade if you got a situation with them you can call them up right fidelity investments you
Can call them up anytime 24 7 and speak to a live human oh my gosh like how powerful is that okay and they all offer zero dollar trades and so nowadays it seems like more of a disadvantage or we can call it a risk to be with robin hood versus a competition like a fidelity or td ameritrade or an e-trade or something like that it’s more of a risk and it’s just a
Disadvantage being with those players i mean let’s put me on a spot okay let’s say my six-year-old son wasn’t six years old let’s say he was 18. and he was thinking about opening up a brokerage account he wanted to start investing okay and he said dad you know who should i you know create an account with should it be robin hood or blah blah blah dude i’m saying
No don’t make an account with robin hood are you kidding me there’s just no way i could suggest that from my son being that all the different situations we’ve seen with robin hood over just the past couple years and the fact that this company has a sky high valuation they raise money left and right and they refuse to just put in a better customer service system
Like customer service in my opinion is everything in business it’s everything okay that’s as important as your product is and when you lack customer service especially as a massive company like robinhood with 11.2 value you know 11.2 billion evaluation it’s just unacceptable as simple as that i can’t i can’t go out there and promote a company like that that’s
Just ridiculous okay i mean some of these comments these are some of my favorite this this top one just try it you can’t steal from somebody who has a negative money and this one i love i would love to threaten them to leave but there’s no one to call it threaten that’s a great one oh and tyler i love that comment there okay so i’m going to update you guys if
We have any more huge news on this coming out about robin hood this whole you know hack situation because this is going to be a developing situation obviously and if anything happens i’ll absolutely bring that news to you guys in this whole situation if you don’t mind smash a thumbs up like i said that will help out in the algorithm big time as far as you know
Spreading the word about this because everybody needs to be alerted exactly of what’s going on with robin hood right now also if you want to check out stockhub it is our free stock market investing discord chat where you can talk with stocks with a ton of other investors out there that will be the ping comment down there it’s also linked in the description hope
You enjoy that thank you for watching and have a great day
Transcribed from video
2,000 Robinhood App Customers Just Hacked! It’s Getting Bad! By Financial Education
