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Investor Protection

Robinhood Employee Steals From a Customer

November 13, 2019

by Howard Haykin

 

As a customer with Robinhood Financial – an online brokerage firm - you linked your personal bank account to your brokerage account, easing the way to transfer funds between accounts. But with such conveniences come the added risk that your personal account information is now in the hands of a third party.

 

 

In April 2019, a customer support analyst with Robinhood Financial converted $1,869 belonging to a customer, and used the funds to pay for personal expenses. The employee had only been on the job 5 months.

 

  • On April 15, she accessed the customer’s personal bank account and transferred $49 from that account to pay her personal credit card balance
  • On April 16, she accessed the account and transferred $1,820 to pay her college tuition.
  • The transfers were made without the brokerage customer’s knowledge or consent.
  • The customer support analyst was promptly barred from the industry.

 

BEWARE - WHAT'S IN YOUR ACCOUNT?    Prudence dictates that, every so often, each of us should check our bank accounts for unusual or unauthorized activity. A simple and prudent exercise that’s become necessary in this internet-driven world.

 

 

[For details, click on FINRA Case #2019062603701.]