Robinhood launched in March 2015 and revolutionized stock trading for the “little guys” by offering trades with zero fees, allowing the purchase of tiny fractional shares, and bundling everything into a sleek mobile app. Today, Robinhood has 31 million users.
When registering for a Robinhood account, it will quickly become apparent that you cannot complete the registration unless you provide Robinhood with a social security number. The collection of this sensitive identity information can make folks feel uncomfortable, so the following article has been written to help explain why Robinhood needs your social security number and how it keeps this information private.
1. Does Robinhood Require A Social Security Number?
Yes, when registering for a Robinhood account, you must provide a valid social security number. If you do not provide an SSN, you simply won’t be able to complete the registration process. Note, a Taxpayer Identification Number (TIN) is not accepted.
2. Why Does Robinhood Require A Social Security Number?
Robinhood requires your SSN for several reasons:
The US government requires all US financial institutions to “Know Your Customer” and make an effort to identity and stop illegal activity such as money laundering.
The US Securities and Exchange Commission (SEC) also has a similar requirement for stockbrokers to collect identification information about their traders.
This requirement means that no company, including Robinhood, can allow anonymous financial trading.
Robinhood requires all customers to be a US citizen, permanent resident, or visa holder. Having a SSN helps prove you are on of the above.
Having a SSN on file allows Robinhood to provide tax-related data to both customers and the IRS. Customers receive tax documents such as a 1099 and the IRS receives data necessary to identify tax evasion.
3. Why Does Robinhood Ask for a Picture of my SSN Card?
Not only does Robinhood require you to provide your SSN, but it may also ask you to send in a picture of your SSN card. This is done to deter identity fraud. A hacker may be able to access your SSN digitally, but it is a lot more challenging to steal the actual paper card.
4. Can You Trust Robinhood with Your SSN?
Yes, you trust Robinhood with your money and stocks, and you can also trust the company with your sensitive data. Robinhood has the network security you would expect from a big financial firm.
5. What Type of Security Does Robinhood use to Protect Customer Data and SSN?
Social Security numbers are encrypted prior to being digitally stored. In addition, the company’s mobile and web applications utilize Transport Layer Security (TLS) protocol with up-to-date configurations and ciphers.
This is in addition to customer-side protections such as requiring strong passwords, storing those passwords as encrypted data, and requiring two-factor authentication.
6. What to do if Robinhood Won’t Accept My Social Security Number?
If Robinhood is concerned about the SSN you registered with, they may ask you to send them a picture of your signed SSN card. You will upload this picture via the Robinhood app, and the company employees will review it. If Robinhood is still nervous about your identity, they may decline you as a customer.
7. How Do I Use Robinhood Without a Social Security Card?
The simple answer is: you cannot open a Robinhood account unless you provide your SSN. The company may also ask you to upload a photo of your actual SSN card. If you have lost your card, then you will need to order a replacement from the Social Security Administration and then try to register for Robinhood again.
First, in order to open a Robinhood account, you need to be a U.S. citizen, permanent resident, or visa holder. A Social Security Number can help prove that you are one of these. Second, the United States Government requires that brokerages like Robinhood know who their customers are.
Sensitive information, such as your Social Security number, are encrypted before they're stored. In addition, our mobile and web applications securely communicate with our servers using the Transport Layer Security (TLS) protocol with up-to-date configurations and ciphers.
Unfortunately, you cannot use Robinhood without an SSN; an ITIN is not accepted, which means you must be a U.S. citizen or permanent resident to use the app.
Why does Robinhood need a picture of my social security card? This is done to deter identity fraud. A hacker may be able to access your SSN digitally, but it is a lot more challenging to steal the actual paper card.
To own stock in a brokerage account, you are required under federal law (the Patriot Act) to provide your Social Security number. This information is used to verify your identity and prevent the bad guys from gaining access to the stock market.
Robinhood (HOOD) is a popular financial services company with more than 12.2 million monthly active users (MAU) as of September 2022. 1 It's considered a safe option for investors' securities and cash for various reasons: Robinhood is a member of the Securities Investor Protection Corp. (SIPC).
Robinhood requests personal information, including financial and tax identification information, in order to comply with U.S. government laws and FINRA rules. We'll request personal information from both new customers and long-standing customers.
When you change your phone number in order to log in, we'll ask you to verify your identity to ensure your account's security. Can't access the email associated with the account? You can change your email with Robinhood as long as you have access to the phone number associated with your account.
A photo of the front and back of your government-issued ID. Bank statements showing that you're the account holder of the 2 linked bank accounts. Photos or PDFs must be clear and easy-to-read. Amount and specific bank account that you'd like to transfer funds to.
The company disclosed the investigation in its most recent 10-K filing with the SEC. In it, the company lists among the various disclosures of potential risks to its business a subpoena from the SEC regarding Robinhood's “supported cryptocurrencies, custody of cryptocurrencies, and platform operations.”
Feb 27 (Reuters) - Robinhood Markets Inc (HOOD. O) said in a filing on Monday it had received an investigative subpoena in December from the U.S. Securities and Exchange Commission related to listings of cryptocurrencies.
1. Financial identity theft. An identity thief can use your SSN together with your PII to open new bank accounts or access existing ones, take out credit cards, and apply for loans all in your name.
Anyone can refuse to disclose his or her number, but the requester can refuse its services if you do not give it. Businesses, banks, schools, private agencies, etc., are free to request someone's number and use it for any purpose that does not violate a federal or state law.
The more your number is out there, the greater the risk of identity theft. Guard the Final Four. Although most widely used and shared, the last four digits are in fact the most important to protect. These are truly random and unique; the first five numbers represent when and where your Social Security card was issued.
Giving someone the last four digits of your SSN could lead to identity theft as this is the direct way to do the most damage to your financial information. Why? Banks and other official institutions often only request the last four digits of your SSN to confirm your identity.
Do you actually own the stock on Robinhood? Investors do own the shares of stocks and ETFs purchased on the Robinhood platform. This is the same type of stock ownership you get when you purchase stocks through most other brokerage companies.
If you want to proceed with opening a Robinhood account, providing your SSN is mandatory. There are a couple of reasons why it's required. First, in order to open a Robinhood account, you need to be a U.S. citizen, permanent resident, or visa holder. A Social Security Number can help prove that you are one of these.
If you do not have a remaining cash balance, Robinhood will automatically close your account once the transfer completes. If you have a balance, you'll need to withdraw your funds and then close your account.
Lots of people have asked if it is okay for them to ask for SSNs. Being a broker they have to. If they need to access your bank account you give them the routing code and account #, never your login. That should not even be provided to an employee of the bank.
If you're linking a bank account, we recommend linking a checking account rather than a savings account to avoid potential transfer reversals. You can also link an external debit card account for instant transfers to your Robinhood brokerage or spending account.
Robinhood Financial LLC is a member of SIPC, which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). Explanatory brochure available upon request or at www.sipc.org. Please note that until funds are swept to a program bank, they are covered by SIPC protection.
We'll need a photo of the original document with a handwritten signature. We can't accept a photo of a computer screen or a photo of a photocopy. Please make sure all four corners of your I.D. are included in your photo. Please submit a PDF of this document.
We'll also begin 24% backup tax withholding on your Robinhood Securities account. That means that all cash proceeds, including future sell orders, dividends, interest, and certain other payments that we make to your account will be subject to 24% withholding.
You can transfer securities and cash to outside brokerages through ACATS (Automated Customer Account Transfer Service). If you want to keep your Robinhood account, you can initiate a partial transfer. Otherwise, you can initiate a full transfer and we'll put your account on hold.
To apply for a Robinhood account, you'll need to have a device that meets our Technology requirements, and meet all of the following individual requirements: Be 18 years or older. Have a valid Social Security Number (not a Taxpayer Identification Number)
If you fail to report your Robinhood tax information, the IRS might assume that all of the proceeds from the transactions are gains and tax you on that total amount. This would leave you with a staggering tax bill.
Robinhood experienced a series of outages in early 2020 that some of its customers allege resulted in trading losses. Robinhood has now agreed to settle a class action lawsuit covering select outages. As part of the settlement, Robinhood has agreed to pay a total $9.9 million.
If you're charged a fee and you don't have enough brokerage cash in your account to cover it, you may have an account deficit. Some of the most common fees that cause customers to have an account deficit are Robinhood Gold fees and fees associated with American Depositary Receipts (ADRs).
Under the card network rules, the merchant has 90 days to respond to our dispute claim. This doesn't mean that it will absolutely take 90 days to resolve your dispute, but just that by the network rules, it can take that long in fairness to all parties.
If you're flagged as a pattern day trader and you don't have $25,000 at the end of the trading day, you'll be issued an Equity Maintenance call and be restricted from day trading for 90 calendar days or until you end a trading day with a portfolio value of $25,000.
Review the earnings posted to your record on your Social Security Statement and report any inconsistencies to us. Contact the Internal Revenue Service (IRS) at 1-800-908-4490 or visit them online, if you believe someone is using your SSN to work, get your tax refund, or other abuses involving taxes.
If someone uses your SSN to obtain credit, loans, telephone accounts, or other goods and services, contact the Federal Trade Commission (FTC). The FTC collects complaints about identity theft from those whose identities have been stolen.
The Social Security Administration can only check your bank accounts if you have allowed them to do so. For those receiving Supplemental Security Income (SSI), the SSA can check your bank account because they were given permission.
You do not have to supply your Social Security number and may legally refuse to give it. The Social Security number will be used to identify you in the NCIC system. Consequently, failure to provide the Social Security number may reduce law enforcement's ability to verify your identity or to investigate the crime.
The banks use your SSN to evaluate your credit report and to send information about your interest and investment income/losses to the IRS. Banks also use your SSN to report tax-deductible mortgage interest to the IRS and to manage your account in general. Most banks will ask for your social security number.
Since 1973, social security numbers have been issued by our central office. The first three (3) digits of a person's social security number are determined by the ZIP Code of the mailing address shown on the application for a social security number.
In addition to randomizing number assignment, the SSA began using some number combos that previously had been excluded, such as allowing SSNs beginning with 7 or 8. (You still won't find an SSN starting with 000, 666 or any number in the 900s; with 00 in the middle; or with 0000 at the end.)
While a Social Security Number in its entirety is unique to each individual, the last four digits of the Social Security Number are used multiple times between different people.
Within each area, the group number (middle two (2) digits) range from 01 to 99 but are not assigned in consecutive order. For administrative reasons, group numbers issued first consist of the ODD numbers from 01 through 09 and then EVEN numbers from 10 through 98, within each area number allocated to a State.
Using the dark web is legal, but it's been used for illegal dealings, like buying stolen personal information, including Social Security numbers (SSNs), bank account information and passwords.
However, according to the official blog by Epic Games, this is being done to ensure that the person creating the account is, in fact, an adult. Since the Social Security Number or credit/debit card information will provide irrefutable proof of age, it is a failsafe mechanic, for the most part.
2FA helps protect your Robinhood account by requiring two sources of verification to sign in to your Robinhood account: something you know (your password) and something you have (a one-time code or device approval request).
No mutual funds or bonds: The lack of mutual funds and bonds may make it difficult to build a truly diversified portfolio. Customers can only access bonds via bond ETFs. Limited customer support: Robinhood has made noticeable improvements to its customer service, but it's still not on par with other brokerages.
Two-factor authentication (2FA) helps protect your Robinhood account by requiring two sources of verification to sign in: something you know (your password) and something you have. Every time you log in or make changes to your Robinhood account, you'll get a request for a verification code.
Once you verify your banking information, Robinhood says it will "never access them again." The app also offers two-factor authentication via SMS text message and third-party authentication apps for additional security protection.
Is Robinhood FDIC insured? Customers who open a cash management account elect to participate in a deposit sweep program. Cash deposited into the cash management account is swept into Robinhood's partner banks, each of which offers FDIC insurance up to $250,000 per depositor.
Introduction: My name is Merrill Bechtelar CPA, I am a clean, agreeable, glorious, magnificent, witty, enchanting, comfortable person who loves writing and wants to share my knowledge and understanding with you.
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