Social security fraud numbers are staggering, so it’s understandable why you’re here. According to Investopedia, millions to billions of dollars per year go into the hands of social security
fraudsters.
That, coupled with the threat of identity theft, leaves millions of Americans wary when anyone
asks for their social security number.
So, if you’re signing up for a Robinhood account, you’re naturally wondering—is Robinhood safe
social security?
The short answer?
Yes. Read on to find out why.
Table of Contents
The Low-down on Robinhood Asking for Your Social Security
Information
You can’t sign up for a Robinhood account without giving them your social security number
(SSN). The good news is that numbers are on your side: Over 22 million customers have
shelled out their SSN to Robinhood and signed up for an account.
Furthermore, Robinhood is a regulated trading platform by highly respected agencies.
The bottom line?
They’d have the U.S. government breathing down their neck if they were to do anything shady
with your SSN.
Why Robinhood Needs Your SSN
When considering the question “Is Robinhood safe social security?” the answer is “It’s as safe
as it can get,” given the regulations in place.
But if you’re a consumer that avoids sharing your SSN even when all signs point to it being safe,
let us give you the background on the “why” behind Robinhood collecting your social security
information.
The reasons that Robinhood asks for your SSN include:
● It helps prove that you’re a U.S. citizen, permanent resident, or visa holder
● U.S. law mandates that brokerage companies report their clients’ information
● Robinhood will use your SSN to prepare your tax form
Let’s take a closer look at each of these points.
U.S. Citizenship Requirement
Robinhood is strictly a U.S.-based brokerage company. Therefore, only the following people are
legally able to access its platform:
● U.S. citizens
● U.S. permanent residents
● U.S. visa holders
SSNs are one of the easiest ways for Robinhood—and the U.S. government—to ensure you are
who you say you claim to be.
Abiding by the Law
As a legitimate, regulated exchange, Robinhood must collect your SSN. It’s not their rule; it’s
U.S. law.
So, save yourself a phone call to Robinhood where you planned to convince them to accept you
as a customer without you having to fork over your SSN.
They’d be breaking the law by doing it.
Tax Time
No one enjoys paying taxes, but it’s the law of life. If you only made a couple of trades during
the year, reporting your taxes on your own likely won’t feel like a huge hassle.
But for more frequent traders, the 1099 form that Robinhood prepares for all of its customers
makes tax time much less stressful.
Robinhood can’t prepare the 1099 form without your SSN. So, go ahead and send them your
SSN so that they can do all the messy calculations of figuring out your realized gains and losses
for the year.
Tips for Avoiding Robinhood Social Security Scams
Now that we’ve answered the question “Is Robinhood safe social security?” it is important to
note that Robinhood SSN scams exist. These schemes aren’t through Robinhood itself, rather
people or companies posing as Robinhood.
So, what are some things you should look out for to avoid a Robinhood SSN scam? The U.S.
Social Security Administration (SSA) offers several tips, including:
● Never give your SSN to a person who reaches out by phone or email asking for it
● Don’t click on suspicious links
● Ignore anyone who says they’ll suspend your SSN
● Report people who threaten with legal action if you don’t give them your SSN
Furthermore, you should check the upper left corner of your web browser to ensure the little
security lock is there before you sign up for a Robinhood account.
It’s also wise to type in Robinhood’s website address into your browser instead of clicking on a
link from an email.
Furthermore, double-check that the web address looks right; scammers will often create a
near-identical link and website, posing as Robinhood.
Preparing to Open a Robinhood Account
You should be proud of yourself for being skeptical of Robinhood asking for your SSN instead of
blindly giving this sensitive information away. Social security fraud is a real and financially
damaging issue that no one wants to have.
The good news is that it’s safe to give Robinhood your social security number. Both the Security
and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) regulate
Robinhood.
Furthermore, the U.S. government requires Robinhood to solicit SSNs from their clients. If
Robinhood refused to do so, they’d get shut down.
Nevertheless, it’s crucial to follow the advice we shared with you here to ensure that you type in
your SSN on the legitimate Robinhood website.
Before you know it, you’ll be well on your way to a safe Robinhood trading experience.