The shares of Robinhood fell 3.2 % in premarket trading on Tuesday, a day after the trading app announced a security issue that compromised some users' information.
The incident occurred on November 3rd, and the breach has already been "contained" according to the business.
According to Robinhood, no Social Security information, bank account details, or debit card numbers were revealed, and no consumers experienced financial loss.
The breach exposed the email addresses of around 5 million individuals, as well as the full names of an additional 2 million. More specific information about a small number of accounts was also obtained, according to the company, when an unauthorized party managed to deceive an employee on a phone call to get access to customer support systems.
Robinhood stated that it has notified law enforcement and is continuing to investigate the situation with the assistance of cybersecurity firm Mandiant.
The announcement comes just a few weeks after the Securities and Exchange Commission released a report critical of Robinhood's business model, which is based on the sale of its clients' order flow data to hedge funds.