And when you have a class action lawsuit from millions of people (or a collective group that adds up to millions of dollars) wanting their money with an electronic forensic specialist saying how RH was negligent in some area (because they could have done a better job at preventing/doing "x"), then I bet that tune changes. There is a way things are supposed to be done, what you and BMK are stating, and then there is a way of how it would play out in the real world. Often, what is written or "should be done" does not line up with the execution when the rubber meets the road.
You make a good point, but you are assuming that the hack involves thousand or millions of customers, and millions of dollars. This Robinhood thing may only involve a couple hundred customers, and the damage may only be six figures. As I said in my earlier post, Robinhood may well have some liability, because it appears that they were negligent and did not take reasonable steps to prevent unauthorized transfers. But most of the transfers will probably be reversed by the banks. BMK
See previous post about negligence. Most hackers go for the balls and wont stop until they have to. Most. This shit happened all the time with BTC exchanges.
The article mentions that Robinhood allowed money transfers to third persons. IB does not allow this: the bank account where you transfer money to has to be be in your name.
Really? Wow, talk about a failure to communicate common sense. How old are the founders of Robinhood? 25ish?
Let's see how long it takes for the hacking affair to become part of the Robinhood Wikipedia article... As of 10:20 PM eastern time on October 9, there is no mention of it. https://en.wikipedia.org/wiki/Robinhood_(company)
Robinhood is a joke. " It took Soraya Bagheri a day to learn that 450 shares of Moderna Inc. had been liquidated in her Robinhood account and that $10,000 in withdrawals were pending. But after alerting the online brokerage to what she believed was a theft in progress, she received a frustrating email. The firm wrote it would investigate and respond within “a few weeks.” Now her money is gone."