The stock trading platform Robinhood has announced a major breach of the personal data of 7 million of its customers, who now face an elevated risk of phishing attacks.
Phishing attacks on businesses are incredibly common. While phishing can take many forms, the most common method involves sending emails to company employees and using social engineering tactics to get them to take a specific action. That action is often to click on a malicious hyperlink in the email that directs them to a website where they are asked to provide sensitive information such as their login credentials.
Phishing can also occur via SMS messages, instant messaging platforms, or social media networks. While it is less common for phishing to occur over the telephone – termed vishing – this method actually predates email phishing attacks. Vishing attacks are more labor-intensive and are a form of spear phishing, where a small number of individuals are targeted.
Vishing Attack Allowed Attacker to Obtain 5 Million Email Addresses
It was a vishing attack that allowed a threat actor to obtain the personal data of Robinhood customers. The threat actor called a Robinhood customer service employee and used social engineering techniques over the phone to get the employee to disclose sensitive information. The information obtained allowed the threat actor to access its customer service system, through which it was possible to obtain a limited amount of data of a portion of its customer base.
It is unclear what tactics the threat actor used, although, in these types of attacks, tech support scams are common. This is where a threat actor impersonates the IT department and tricks an employee into disclosing credentials under the guise of a software update or a fix for a malware infection.
Regardless of the lure, the threat actor was able to access its system and stole a list of 5 million customer email addresses, a list of the full names of 2 million individuals, and the names, dates of birth, and zip codes of 310 individuals.
No financial information or Social Security numbers are believed to have been obtained in the attack, but the Robinhood data breach is still serious for affected individuals who now face an elevated risk of phishing attacks.
Robinhood said after the customer lists were exfiltrated, a ransom demand was received. Robinhood did not say whether the ransom was paid, only that the cybersecurity firm Mandiant was investigating, and the incident has been reported to law enforcement.
Risk of Phishing Attacks in Wake of Robinhood Data Breach
Attacks such as this where an attempt is made to extort money from a company after sensitive data are stolen are commonplace. If a company refuses to pay, the attack is monetized by selling the stolen data. Even if a ransom is paid, there is no guarantee that data will not be sold. A list of the email addresses of users of a trading platform would be highly sought after by cybercriminals, who could craft convincing phishing emails to obtain sensitive data to allow users’ accounts to be accessed.
There have been many cases where email addresses have been used in phishing campaigns that reference the breach itself, spoofing the company that was attacked although all manner of lures could be used. There is a fair probability that phishing campaigns will be conducted using the stolen data, so users of the Robinhood platform should be on high alert.
Robinhood has advised customers to be wary of any emails that claim to be from the company and said it would never send a hyperlink in an email to access an account, instead users should only trust Robinhood messages that are sent within the app. For further protection, 2-factor authentication should be enabled, and users of the app should be cautious when opening any email messages, and to be particularly wary about any message that requests sensitive information or includes a hyperlink or email attachment, especially if it is an unsolicited email from an unknown sender.