Hackers often infiltrate billion-dollar companies using a method known as social engineering. Social engineering is the use of deception and manipulation to get people to reveal sensitive information. For example, let’s say you work for a company and your responsibility is to manage money. A social engineer would create a fake company and send fraudulent invoices to your email, deceiving you into paying.
Countless companies have lost millions of dollars because of social engineering, including Toyota, Target, Google, and Facebook. The latest victim is the world’s most controversial Fintech platform, Robinhood.
On November 3, a hacker gained access to millions of RH customers’ private information — including email addresses and full names of the victims. The company says while hackers got sensitive information, no customers faced financial loss.
The hacker used social engineering to perform their trick by convincing a RH customer service employee they had clearance to access “certain customer support systems.” They then gained access to 5 million customer email addresses and the full names of about 2 million customers.
What was the hacker planning to do with the stolen information? According to Robinhood, the hacker tried to extort the company using the stolen information. And although email addresses and full names may not seem like valuable information, the hacker could use them to find other personal information.
Robinhood says they’re working with the relevant authorities to further investigate the matter. You can go to their website if you want to know if the hacker compromised your information.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.