Do you have a Robinhood account? If not, what are you waiting for? This stock trading app is amazing! But there’s one thing you should be aware of before you start using it… your Social Security number.
Yes, that’s right – your Social Security number is required to open an account with Robinhood. Don’t worry though, this post will explain why they need it and how you can keep your information safe. So keep reading to learn more about Robinhood and Social Security numbers!
What Is Social Security Number In Robinhood?
The Social Security number is a nine-digit identifier issued by the United States Government to its citizens and residents to trace their total income (salaries or wages, self-employment earnings, benefits, etc.). It is the prime alliance to social security.
When you want to open an account with Robinhood, it is a protocol that you must follow by providing your valid SSN. If otherwise, you are not allowed to complete the account registration.
Note: Robinhood exchange is a US company; therefore uses this Social Security Number(SSN) to qualify you as a US citizen whether or not you are one.
Why Does Robinhood Need My Social Security Number?
You cannot complete opening a Robinhood account if you cannot provide a social security number.
Completing this sensitive identification information can be perplexing, so the following topic is written to explain the exact purpose of why Robinhood requires your SSN and how this information is safe with them.
Reasons Why Robinhood Need Your Social Security Number:
1. To Perform KYC Verification
The United States administration expects all financial establishments to perform the KYC (Know Your Customer) verification and put effort into identifying and stopping illicit activities like money hiding.
The States “Securities and Exchange Commission” – SEC has an identical regulation for stock exchangers to obtain marker information about traders.
This regulation implies that no firm incorporating Robinhood can permit unidentified financial transactions.
2. To Ensure You Are A US Citizen
Robinhood needs all users to be citizens of the United States, continual residents, or passport owners.
Possessing a social security number assists to prove that you are one of these mentioned above.
3. To Report Your Profit To IRS
Keeping an “SSN” on record enables Robinhood to give tax-associated information to users and the “IRS.” Robinhood users get tax records like 1099, and the “IRS” obtains information relevant to point out tax avoidance.
Main Reason Behind SSN number Because Robinhood required to report any profit that your investments generate to the IRS.
Also Read: Fix: Robinhood Not Enough Buying Power
Is Robinhood Safe For Social Security Numbers?
Yes, you can trust Robinhood for your Social Security Number. Sensitive information, like Social Security numbers, is encoded before their storage. Moreover, our web and mobile apps interact safely with our backend using “Transport Layer Security” – TLS code with updated ciphers and layout.
The “TLS” assists in guaranteeing that everything you send across to our web servers stays private—even your confidential account details, e.g., your passcode, bank report, and others.
As long as we have ascertained your bank credential, we can never access them the second time.
It has designed trusted third-person incorporation to obtain data about your bank statements like available balance and account number.
This is also related to the user-side security, e.g., requiring tough passwords, saving these passwords as encoded data, and employing two-way authentication.
Why Is Robinhood Asking For A Picture Of Social Security Card?
Robinhood does not stop at asking you to provide a Social Security number but goes ahead to enquire for a picture of your SSN card. They do this to prevent identity fraud.
A cyberpunk may want to have access to your SSN online, but it is quite hard and a nut to crack to get that access to the real paper certificate.
Also Read: Is Robinhood FDIC & SIPC Insured?
Can I Trust Robinhood With My Social Security Number?
Yes, your money and assets entrusted to Robinhood are safe. Your stock and private details remain private with them, there’s no external access from anyone or anything.
Robinhood has built the system of insurance you wouldn’t expect from a big financial company.
Robinhood Social Security Number Error
A “1099” error can sometimes occur in the Robinhood app. Whenever Your 1099 has any inaccuracy, an error message is passed and a rectified one will be issued to you if you reach out to the customer support team.
Here is a list of possible causes in which you will be warned of the error code and is expected to earn a rectified 1099:
- A firm where you hold shares modified their earnings or income
- When you switched your accounts the fee basis of your moods was erroneous.
- You edited your SSN; (social security number).
Please seize the time to evaluate your 1099s to confirm all the provided details are accurate and correct.
If you discover a mistake, please install an empty “W-9 form” from the “IRS website” , complete it, then mail the up-to-date “W-9” to our customer service team without wasting time. Immediately you collect the rectified “1099”, go ahead and arrange your taxes utilizing the rectified one.
If you want a rectified “1099”, it will be available in 1 to 2 weeks after correction.
