The American financial services company, Robinhood, has concurred to disburse a hefty sum of $45 million to put an end to a Securities and Exchange Commission (SEC) probe. This investigation was instigated due to a series of suspected infractions, as revealed by Wall Street Journal on Monday.
Robinhood will settle the charges via its two brokerage divisions. A significant aspect of the suspected violations relates to the much-publicized November 2021 data breach. This cyberattack saw over five million customer email addresses, alongside two million customer names, unlawfully accessed, with some specific customer data also being exposed.
In the eyes of the SEC, the two Robinhood divisions – Robinhood Securities and Robinhood Financial – are guilty of failing to implement suitable policies and measures, thereby leaving customer information vulnerable, as stated in the WSJ report.
Further accusations levied by the SEC claim that the Robinhood units did not establish a sufficient system to safeguard their customers against potential identity theft.
Original source: Read the full article on TechCrunch
