Have you set up a Robinhood account? What are you waiting for if not? This stock trading app is incredible! But there is one thing you should know before you start using it... your Social Security card number
Yes, your Social Security number is required in order to open an account with Robinhood. But don't panic; this piece will explain why they require it and how you can keep your information secure. So continue on to find out more about Robinhood and Social Security numbers!
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What is Social Security Number In Robinhood?
The Social Security number is a nine-digit identifier issued by the US government to its citizens and residents in order to track their total income (salaries or wages, self-employment earnings, benefits, etc.). It is the most important social security coalition.
When you wish to open an account with Robinhood, you must follow a routine that includes supplying your valid SSN. Otherwise, you will be unable to complete the account registration process.
Because Robinhood Exchange is a US corporation, it uses your Social Security Number (SSN) to determine whether or not you are a US citizen.
Why Does Robinhood Need My Social Security Number?
If you do not have a social security number, you will be unable to open a Robinhood account.
Completing this sensitive identification information can be difficult, so the following subject is prepared to clarify why Robinhood requires your SSN and how they keep your information safe.
Reasons Why Robinhood Need Your Social Security Number:
1. To Perform KYC Verification
The US administration wants all financial institutions to complete KYC (Know Your Customer) verification and to make efforts to identify and prevent illegal activity such as money laundering.
The "Securities and Exchange Commission" - SEC - of the United States has a similar requirement for stock exchangers to gather marker information about traders.
This rule states that no company incorporating Robinhood may allow anonymous financial transactions.
2. To Ensure You Are a US Citizen
Robinhood requires all users to be US citizens, permanent residents, or passport holders.
Having a social security number makes it easier to show that you are one of the people listed above.
3. To Report Your Profit to IRS
Having a "SSN" on file allows Robinhood to provide tax-related information to users and the "IRS." Robinhood consumers receive tax records such as 1099, and the "IRS" obtains information helpful to identifying tax evasion.
The main reason for the SSN is that Robinhood is obligated by the IRS to disclose any profit generated by your investments.
Is Robinhood Safe for Social Security Numbers?
Yes, you may put your Social Security Number in the hands of Robinhood. Sensitive data, such as Social Security numbers, is encrypted before storage. Furthermore, our online and mobile apps communicate with our backend in a secure manner by utilizing "Transport Layer Security" - TLS code with updated ciphers and designs.
The "TLS" protocol helps to ensure that everything you submit to our online servers remains private, including your confidential account information, such as your passcode, bank report, and others.
We will never be able to access your bank credentials again after we have obtained them.
It has created a trusted third-party incorporation to acquire information from your bank statements such as available balance and account number.
This is also connected to user-side security, such as demanding strong passwords, storing passwords as encrypted data, and utilizing two-way authentication.
Why is Robinhood Asking for a Picture of Social Security Card?
Robinhood does not stop at requesting your Social Security number; it also requests a photo of your SSN card. This is done to prevent identity theft.
A cyberpunk may want to get your SSN online, but getting access to the actual paper certificate is difficult and time-consuming.
Can I Trust Robinhood With My Social Security Number?
Yes, the funds and valuables you have entrusted to Robinhood are secure. Your stock and personal information are kept private with them; no one or item has access to them.
Robinhood has created an insurance system that you would not anticipate from a large financial institution.
Robinhood Social Security Number Error
The Robinhood app may occasionally display a "1099" problem. If your 1099 contains an error, an error letter is generated, and a corrected version will be sent to you if you contact the customer service team.
Here is a list of likely circumstances for which you will be notified of the error code and will be anticipated to get a corrected 1099:
- A company in which you have stock changed its earnings or income.
- The pricing foundation of your moods was incorrect when you moved accounts.
- You changed your SSN; (social security number).
Please take the time to review your 1099s to ensure that all of the information given is accurate and precise.
If you find an error, please download an empty "W-9 form" from the "IRS website," fill it out, and mail the completed "W-9" to our customer support staff as soon as possible. As soon as you receive the corrected "1099," file your taxes using the corrected one.
If you require a corrected "1099," it will be ready within 1 to 2 weeks of adjustment.
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