As reported on Bloomberg, on January 8, 2021, EKO filed a putative class action on behalf of approximately 2,000 investors whose Robinhood accounts were hacked, personal information compromised, and accounts looted.
The complaint, filed in Santa Clara County, California, alleges Robinhood's rapid growth and sub-standard security measures left customer accounts vulnerable. Robinhood has acknowledged it has failed to encrypt customer login credentials, did not require two-factor authentication, had no process to verify new bank account links.
Making matters worse, the complaint alleges, Robinhood was unprepared to handle what happened after the hacks. It lacked mechanisms to take calls from customers whose accounts were being affected, instead requiring customers email the company to alert them of the hacks. The complaint claims delays in email responses resulted in further losses.
Click here to learn more about the case.
