Why does Robinhood need my SSN? Is Robinhood Safe, or do they Scam me?
Many of us now look askance when asked for our Security Number. As a result, people have grown considerably wary about disclosing personal information online or in person.
This post will evaluate Robinhood and address whether or not Twitter requires your national insurance number.
Considering the rise in identity burglaries over the last decade, this behavior is acceptable. Over one million incidents of identity theft were reported in 2020 alone, upwards of double the amount reported in 2019.
Why does Robinhood require a Social Security Number?
So you’ve heard about Firstrade and Robinhood’s free trading and have finally decided to establish an account to check for yourself (yep, transactions are genuinely commission-free, and they offer you FREE stock just for signing up).
However, you’re unsure why they request your national insurance number (SSN) throughout the account registration procedure. Why do they require something so personal?
The simple answer is that the U.S. law requires all brokerage (not just Robinhood) to gather this and other personal information from anybody wishing to register an account. Aside from the government, this knowledge is also suggested by self-regulating bodies in the financial services industry, such as the Finra (FINRA). There are two main reasons for this necessity, which we will examine further below.
Would Robinhood Still Need My Social Security Number?
If you recently attempted to establish an account with Robinhood, you may recall being prompted to give your Social Security number. So, do you have to tell them your phone number? Why do they require it?
The solution to the very first question seems to be relatively simple. If you wish to establish a Robinhood account, you must provide your Social Security Number. It is essential for several reasons.
First, you must be a U.S. citizen, residence permit, or visa holder to establish a Robinhood account. A Unique Identifier might assist you in establishing you must be one of those people.
The Robinhood Security People employs a variety of industry-standard safeguards to protect customer accounts and provide a safe and secure experience with us. We recognize that you invest a high level of faith in our solutions. We are continually trying to make Robinhood one of the most secure locations for some of you to build a future financial future.
Here are some of the security precautions we take to protect your data:
When we keep your user credentials, we hash them and use the sector BCrypt hashing method or never collect them in plaintext—that is, they are kept in a confusing format that attackers find difficult and time-consuming to break.
Sensitive data, such as your Ssn, is encrypted before being saved. Furthermore, our mobile and web services securely connect with our servers by utilizing the Transport Layers Security (LTE) protocol with up-to-date settings and ciphers. TLS helps to guarantee that any information you submit to our servers stays private, including your individual and account information, including your passcode, bank account, etc.
We will never have access to your banking credentials again once verified. We gather information about any local bank, such as their account number and capital account, through reliable third-party connections.
Why does Robinhood need a photo of my Social Security card?
How does Robinhood want your SSN but might also request a photograph of your SSN certificate? This would be done to discourage identity theft. A hacker may indeed be able to have your SSN remotely, but stealing the actual paper card is far more complex.
Can You Put Your SSN in the Hands of Robinhood?
Yes, you can keep your money and stocks in Robinhood, but you can also put your data in the company’s hands. Robinhood offers the network security you’d expect from a large financial company.
What Should I Do If Robinhood Refuses to Accept Our Social Security Number?
If Robinhood is worried about just the SSN you bought with, they may request a photo of our signed SSN document. You would upload this image to the Robinhood smartphone, and it will be reviewed by company staff. If Robinhood is still concerned about your identification, they may refuse to accept you as a trader.
How Can I Use Robinhood If I Don’t Have a Social Security Number?
The short answer is that you cannot make a Robinhood account without giving your Social Security Number. You may also be asked to provide a snapshot of your genuine SSN card. If you have misplaced your card, you must request a duplicate from the Medicare Program.
Why is a Unique Identifier required for Robinhood?
Robinhood wants your SSN for various reasons. The U.S. government mandates all U.S. banking institutions to “Know Your Customer” and take steps to identify and prevent criminal conduct such as financial fraud.
The Securities Commission (SEC) in the United States has a similar obligation for stockbrokers to gather identity information for their traders.
Because of this restriction, no firm, including Robinhood, may enable anonymous financial trading. All Robinhood clients must be U.S. citizens, permanent residents, or visa holders.
Is Robinhood the Next Big Thing in Investing?
Robinhood makes investing easier for its consumers. Transactions are substantially faster, and stock data is updated in real-time. It is why mobile investment apps are becoming more popular. However, rivals such as Coin Master Invest and SoFi Investments are attempting to stay up.
Is Robinhood a safe and secure place to put your money? As the most incredible investment app accessible today, it is unquestionably a cut above the competition.
Is it safe for traders to set up an account with Robinhood?
Is it safe for investors to utilize Robinhood? Is it necessary for me to connect a savings account and submit my SSN? These are some of the queries that investors have before installing the most common investment app. In reality, Robinhood provides a safe and secure brokerage account that is great for beginner investors.