Empty Robinhood account can still be a prize for scammers
MarketWatch’s Moneyist says a takeover attempt on a no-balance brokerage account can expose personal data and create room for fraud.
By Frankie Delgado · News Reporter
3 min read
An empty Robinhood account may still be worth chasing for a scammer, according to MarketWatch columnist Quentin Fottrell, who warned that account access can be useful even when there is no cash sitting inside.
Fottrell, writing in The Moneyist, responded to a reader who said they were receiving repeated notices that someone was trying to change the email address tied to their Robinhood account. The reader said the account held no money and that the number provided to dispute the change did not appear to connect them with a live person.
The reader said they had been ignoring the attempts. Fottrell’s answer: delete and block suspicious messages, and contact the company only through official channels listed on its website or app.
Why an empty account still matters
According to Fottrell, the value of a brokerage account is not limited to its balance. Such accounts can contain sensitive personal information, including a Social Security number, date of birth and home address.
That information can be used by thieves to open credit cards, apply for loans in a victim’s name or sell data through illicit online markets, Fottrell wrote.
He also said compromised brokerage accounts can be used to help launder money, move stolen funds, hide the source of illegal proceeds or support cryptocurrency scams. A scammer trying to take over the account may not know the account is empty, Fottrell added, and may still find other uses for it if they gain control.
One risk Fottrell identified involves instant deposits. Some trading platforms may give customers temporary buying power while an Automated Clearing House transfer is still processing. Because ACH transfers can take several days to clear, he wrote, a criminal could try to use that window to trade securities or buy cryptocurrency before a transfer fails.
Robinhood’s own warning
Robinhood warns customers that fake support scams are common and may appear in search results or on social media, sometimes as promotions, according to guidance cited by Fottrell.
The company says customers should contact Robinhood support only through the app. Robinhood says its support staff will not ask for account login details or two-factor authentication codes through chat or email.
Robinhood also warns against searching the web for customer-service phone numbers, saying many phone-support scams direct customers to fake Robinhood numbers. The company says it does not offer a direct phone number that connects customers to a live agent.
According to Robinhood, scammers may ask victims to provide or confirm personal information, account credentials or two-factor codes. They may also ask users to transfer money or download malicious software.
The basic safety rule
Fottrell said phishing attempts are not limited to brokerage accounts. Crypto accounts, bank accounts and eBay accounts can also be targeted through emails or links that appear to come from legitimate companies.
His central advice was blunt: do not click suspicious links. Malware can give scammers access to a computer, cloud storage or professional email account, creating more chances to impersonate the victim or find sensitive data such as a Social Security number, he wrote.
Phishing messages may include fake invoices or files made to look like routine documents, according to Fottrell. Even an account with only a small balance can be attractive if it gives criminals a path to personal data, identity theft or financial fraud.
This story draws on original reporting from MarketWatch.