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Investor Protection

Robinhood Employee Steals From a Customer

November 13, 2019

by Howard Haykin


Imagine you're a customer with Robinhood Financial – an online brokerage firm - and you linked your personal bank account to your brokerage account. Going forward, you can easily transfer funds between the accounts. 



However, the conveniences derived from today's internet technologies come the added risks - in this case, information about your personal bank account is now in the hands of a third party. 


Which brings us to April 2019, when a customer support analyst with Robinhood Financial converted $1,869 belonging to you, the customer. The employee then used the funds to pay for her personal expenses. 


  • 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.]