Robinhood Users Say Accounts Were Looted, No One to Call

Tradex · Oct 9, 2020

BMK said:
But most brokers will not transfer funds to or from a newly identified account until they have taken steps to verify that the bank account has the same name as the brokerage account.

Some brokers will even make a tiny deposit (less than $1) to your bank account and you need to tell them the amount of the deposit so that they can verify it's yours.

Overnight · Oct 9, 2020

Tradex said:
Some brokers will even make a tiny deposit (less than $1) to your bank account and you need to tell them the amount of the deposit so that they can verify it's yours.

That is a misquote. I did not type that, @BMK did. Retract. You have 45 minutes to comply.

Tradex · Oct 9, 2020

Overnight said:
That is a misquote. I did not type that, @BMK did. Retract. You have 45 minutes to comply.

Yep, sorry, I didn't even notice.
Weird, how did that happen?!?

Overnight · Oct 9, 2020

Tradex said:
Yep, sorry, I didn't even notice.
Weird, how did that happen?!?

Well, the autumn does bring out country fairs...and clowns...

Scared of clowns, maybe? Getting jittery? Hehehe!

TrailerParkTed · Oct 9, 2020

Nobert said:
There's simple ways to avoid that, from brokers perspective, e.g. in this case, the account for withdrawal , could be only the one, from which deposits were made.

,,Welcome to Robbing The Hood.
Simple to use & simple to lose''

Like IBKR does!

MrRenev · Oct 9, 2020

Tradex said:
It does not matter, a fraud was committed so the first receiving bank must return/refund the money, period.

Ever heard of money laundering? Ever heard of the money ending up offshore and the investigators losing track of it? Ever heard of cryptocurrencies being pyramid schemes used only by criminals for laundering billions every year?

The irony is alot of these US millenial socialist idiots were "crypto believers" that will strongly defend their beloved ponzi schemes, and now their money is going to get laundered via the cryptos they supported.

Overnight · Oct 9, 2020

Tradex said:
Yep, sorry, I didn't even notice.
Weird, how did that happen?!?

I'm wondering if it is related to the other quote mishaps happening today. If you see anymore wonkiness, add it to the thread in the Feedback section in the quote thread I started.

Something is awry in the forum code juju.

narafa · Oct 10, 2020

Tradex said:
It does not matter, a fraud was committed so the first receiving bank must return/refund the money, period.

That's not possible for sure. The first receiving bank did not do anything wrong or fraudulent to be penalized for it. It's Robinhood mistake and they should be accountable & responsible for.

BMK · Oct 10, 2020

narafa said:
That's not possible for sure. The first receiving bank did not do anything wrong or fraudulent to be penalized for it. It's Robinhood mistake and they should be accountable & responsible for.

Fraudulent ACH transactions can often be reversed to recover the money. The concept, and the process, are similar to stopping payment on a check, or the reversal of a deposit when a traditional paper check is returned for insufficient funds.

I have addressed this in more detail in a different thread, which you can read here:

https://www.elitetrader.com/et/thre...ed-risk-of-same-thing-happening-to-ib.351149/

That said, I also think that Robinhood may have some liability. Allowing funds to be transferred to a bank account without first verifying that the bank account belongs to the same person as the brokerage account is a serious flaw in the architecture of their system, and is probably gross negligence.

BMK

Nobert · Oct 10, 2020

TrailerParkTed said:
Like IBKR does!

Or Admiral Markets

zdreg said:
What happens if the bank you made the deposit from no longer exists or you no longer deal with them or you use multi- banks? How does the owner of the account make a withdrawal?

I doubt, that banks disappear that often in states.
And if so, one should choose some bigger players, instead of something small e.g $USB
(btw, potential 100% gain, if going a for longer swing)

zdreg said:
multi- banks? How does the owner of the account make a withdrawal?

Then, they could have all of those multi - banks, as one of yours
and for sure, not a single one, would belong to the scammers.

It's just pathetic & absurd from RH side.

Absolute noobs.