KSL Investigates Buyer Complaints About In style Robinhood Buying and selling App

SALT LAKE CITY – Getting caught on any account could be irritating, however getting caught on an account you’ve gotten 1000’s of {dollars} in could be terrifying.

That is why a number of individuals from throughout the nation reached out to KSL Client Investigator Matt Gephart after being kicked out of Robinhood – an app that goals to be a “monetary system for all. “

The complaints started after a narrative from KSL Investigates in April about Robinhood’s lack of cellphone help for patrons having a difficulty with their account.

Two shoppers, identical drawback

Katy Spencer contacted her residence in Houston, Texas after a hacker gained entry to her Robinhood account.

“One morning I awakened and a code was despatched to me,” she advised KSL TV. “It means somebody was making an attempt to log into my account.”

Spencer stated she tried to alter her account password, however the e mail with the hyperlink to take action by no means arrived. She instantly emailed Robinhood, the one line of communication offered for customer support.

“They got here again to me fairly rapidly to say, ‘We have locked your account,'” she stated.

However ten days later, Spencer determined to name KSL Investigators when Robinhood had not given any details about his account. At this level, she claimed that she had given Robinhood all the mandatory paperwork to show that she was the proprietor of her account.

His frustration stems from the invention that the scammer had ordered a Robinhood debit card, and it was despatched simply days after Spencer emailed Robinhood, informing them of the fraud.

“The subsequent day I obtained an e mail notification that stated $ 5,000 had been withdrawn from my checking account,” Spencer stated.

Linda Preece of Cache County, Utah contacted KSL TV on behalf of her mom, whose Robinhood account was additionally taken over by an unauthorized particular person. Like Spencer, Preece lamented the shortcoming to get solutions or cellphone help from Robinhood.

“I instantly began on the lookout for the Robinhood help cellphone quantity,” stated Preece. “There’s one on the listing, however if you name him they hold up on you.” There is no such thing as a one answering. They are saying, “Please consult with our on-line help. “

Preece’s mom had put her financial savings into her Robinhood account – about $ 170,000. Regardless of a number of emails to Robinhood help, she was additionally unable to get updates on the account.

“It was emotionally draining simply making an attempt to contact them,” Preece stated.

KSL TV additionally heard from individuals in Ohio and Florida who advised us that by looking the web for “Robinhood clients blocked on their accounts,” our preliminary story got here up, prompting them to ask for assist as properly. ‘assist.

“It might take longer than ordinary to get a response”

Once we reached out to Robinhood to get solutions for Spencer and Preece, Robinhood advised us he was “unable to supply accounts receivable particulars.”

Its spokesperson confirmed that the corporate “at present has no manner of requesting a name for patrons whose account entry is blocked” and gave us a hyperlink for e mail help. This hyperlink features a disclaimer: “You can too contact us, however it could take longer than ordinary to get a response. “

On June 30, 2021, FINRA, the Monetary Sector Regulatory Authority, fined Robinhood $ 57 million, the most important ever issued, and ordered the corporate to pay its shoppers $ 12.6 million in damages for offering “false or deceptive data” about issues reminiscent of choices buying and selling, buying and selling energy, ‘shopping for and margin calls.

FINRA discovered that Robinhood “did not report tens of 1000’s of written buyer complaints to FINRA that it was required to report.”

We contacted Robinhood about these punitive actions. Jacqueline Ortiz Ramsay, Public Coverage Communications Officer, made this assertion:

“Robinhood has invested closely in bettering the steadiness of the platform, bettering our instructional assets, and strengthening our buyer and authorized help and compliance groups. We’re comfortable to go away this case behind and stay up for persevering with to give attention to our shoppers and democratizing finance for all. ”

Robinhood was conscious of the rise in fraudulent account takeover makes an attempt, reporting to us this tweet on current phishing assaults towards their clients. A cybersecurity firm says Marketwatch that they noticed a 250% improve in takeover fraud from 2019 to 2020.

Defend your cash

The excellent news is that KSL Investigates has found that Robinhood buyers are protected towards fraud. In response to the corporate’s web site, Robinhood will “cowl 100% of direct losses resulting from unauthorized exercise” in accounts receivable. They listing securities and cryptocurrency as protected, together with necessities for patrons to guard accounts.

Robinhood is a member of the Securities Investor Safety Firm – or SIPC. A SIPC spokesperson advised KSL Investigators that “unauthorized buying and selling is protected by the Securities Investor Safety Act”, which incorporates losses “as much as $ 500,000”. It doesn’t embrace cryptocurrency.

One caveat with this protection is the requirement for shoppers to inform their brokerage of fraudulent exercise in writing. Failure to take action might imply “your eligibility for SIPC safety could also be compromised”.

As for complaints concerning customer support, together with the shortcoming to entry their brokerage account, they are often addressed to FINRA and the SECOND.

Accounts restored

After our emails to Robinhood, Spencer and Preece have been capable of entry their accounts once more. The 2 found that their securities and their crypto had been bought, however Robinhood reinstated their shares. Preece advised us that Robinhood had not reinstated his mom’s cryptocurrency purchases.

Their frustration stays that Robinhood was lower than reactive of their respective conditions.

“It is unhappy to know that I’ve to go to a media outlet to get assist for an organization that has a internet price of virtually $ 13 billion,” Spencer stated.

Have you ever been via one thing that you just assume is mistaken? KSL investigators wish to assist. Ship your tip to [email protected] or 385-707-6153 so we are able to be just right for you.

About Edith J.

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