Stock trading app Robinhood emailed customers to adopt two-factor authentication and strong passwords to help them protect their Robinhood account.
Earlier in National Cybersecurity Awareness Month, on October 15,2020, it is reported that hackers had accessed around 2,000 Robinhood accounts and some customers had lost funds. The customers also had difficulty getting in touch with the company to deal with the matter.
Security has long been a key issue in the financial industry, especially with retail customers, and many companies have long implemented two-factor authentication, which requires at least two pieces of information to access a site, thereby increasing security.
Robinhood is known for being very user-friendly. One of the reasons for that is the ease of logging in, which two-factor authentication complicates. Long, secure passwords and passphrases take longer to type and might result in many “forget password” queries. Robinhood security requirements appear to be more lax than the standard in the brokerage industry. Robinhood points out that there are a wide array of security measures available that the company employs to sniff out fraudulent behavior.