Today, many of us raise an eyebrow when someone asks for our Social Security number. Whether it's online or in physical form, people have become much more skeptical about giving out personal information.
In this article, we will provide a review on Robinhood as well as answer the question regarding whether or not Robinhood really needs your social security number.
This practice is completely understandable when you look at the growth of identity theft cases over the past decade. In 2020 alone, there were over one million cases of identity theft, more than double the numbers from 2019.
On the other hand, some services genuinely need your data in order to help you. A good idea is to always understand why you need to provide that information, especially when it comes to your Social Security Number.
In the wrong hands, this number can be used to open credit cards or impersonate you in other ways. Always be wary of giving it out to people or businesses that you don't know.
If you recently tried opening an account with Robinhood, you may remember being asked to provide your SSN. So, do you have to give them the number? Why do they need it?
The answer to the first question is pretty straightforward. 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.
Second, the United States Government requires that brokerages like Robinhood know who their customers are. This helps to prevent fraud, money laundering, and tax evasion schemes. Social Security Numbers are unique to each individual, which makes them a great tool for monitoring income and ensuring taxes are paid.
By having your SSN, Robinhood can easily track who you are and report your financial dealings to the government if necessary.
Requiring your SSN is not unique to Robinhood. With any brokerage account, you will have to provide your social security number.
Robinhood is a highly popular investing platform that gives all investors the chance to invest with $0 commissions. They also have a number of features such as retirement accounts, margin investing, options, fractional share, cryptocurrency, and more.
The company got its start in 2013 and has gained immense popularity since. The app is free to use and explore. If you are interested in learning more about Robinhood, be sure to check out our complete review of the platform.