Five Robinhood users reported scamming activities inside the platform without getting any solution from the authority, reported Bloomberg.
One customer named Soraya Bagheri found 450 shares liquidated by unknown entities. However, Robinhood’s response was “frustrating” according to the user.
According to Bagheri, she notified the brokerage company immediately where she expected a quicker response. But the Robinhood team responded with a mail for investigation within a week.
They don’t have a customer service line, which I’m quite shocked about.
This created frustration among the users as the hackers took over their accounts and allegedly looted thousands of dollars.
A spokesman said, “We’re actively working with those impacted to secure their accounts.”
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Robinhood Users Seeking Help from the SEC and FINRA
Four of the users appealed to the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) to look at the matter. The authorities responded with seeking more information.
However, both the authorities declined to comment on the issue. Interestingly, multiple clients complained about the account funds disappearing this year although the company reported doubling the customer-service agents.
Soraya Bagheri said, “They don’t have a customer service line, which I’m quite shocked about.”
Popularity Exploding in Recent Years
The California-based online brokerage company got viral among the retail stock traders in just seven years. According to the experts, pandemic helped the company to grow as the stock prices started to swing.
Many home stuck Americans and millennials during the pandemic started diving inside the platform for a quicker profit.
A recent report from the New York Times showed that “Millions of young Americans have begun investing in recent years through Robinhood. The ease of trading has turned it into a cultural phenomenon and a Silicon Valley darling, with the start-up climbing to an $8.3 billion valuation.”
Despite the growing number of customers the company failed to provide quick services to the customers. Many experts in the financial markets are complaining about the brokerage for bringing a devastating results to the young traders.
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