The cyber attack took place last week, but has only now been disclosed.
However, according to the company, no customer bank details have been recovered and the incident has not resulted in “financial losses” for customers.
Phone call customer service
The attack was set up via a telephone conversation with a customer service representative of the app, on which consumers can trade stocks.
The hacker was able to gain access to internal systems through the customer service representative. Robinhood says it has stopped the attack and notified authorities.
“After we controlled the break-in, the unauthorized party demanded an extortion payment,” Robinhood said in a statement.
The company did not disclose whether payment has been made. Robinhood has the incident investigated.
Share value decline
After the company announced the hack yesterday, the value of the Robinhood share fell by about 3 percent, according to Bloomberg.