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BUSINESS Friday 29 January 2021
Brokerages limit trading in GameStop, sparking outcry

By ALEX VEIGA sand dollars.
AP Business Writer “We pride ourselves in the
Robinhood and other retail name Robinhood because
brokerages are taking steps we’re trying to make more
to tamp down the specu- money and be the next
lative frenzy surrounding people at the top,” he said.
companies such as Game- “You would expect Robin-
Stop, but the actions only hood to let us do our thing
sparked more volatility and instead of blocking us and
an outcry from users of the saying it’s for our protec-
platforms and some mem- tion.”
bers of Congress that small Investors such as Amaya
investors are being treated are getting some sympa-
unfairly. thy from some members of
GameStop stock has rock- Congress.
eted from below $20 ear- Rep. Alexandria Ocasio-
lier to close around $350 Cortez, D-N,Y., called Rob-
Wednesday as a volunteer inhood’s actions “unac-
army of investors on social ceptable,” noting that as
media challenged big in- a member of the House
stitutions who had placed Financial Services Commit-
market bets that the stock tee, she’d support a hear-
would fall. This Dec. 17, 2020 file photo shows the logo for the Robinhood app on a smartphone in New York. ing, if necessary, to explore
The action was even wilder Associated Press why the online brokerage
Thursday: The stock swung Blackberry, Nokia, Express Ameritrade took similar as an affront. Robinhood is blocking small investors
between $112 and $483. At Inc., Koss Corp., American steps to restrict trading on investor Carlos Amaya said from buying stocks while
midday it was down 27% at Airlines, Tootsie Roll, Trivago their platforms Wednesday. the app’s action Thursday hedge funds “are freely
$255. and Naked Brand Group Robinhood’s stated goal is was a disappointment to able to trade the stock as
Robinhood said Thursday would be affected by the to “democratize” investing users like him who prided they see fit.”
investors would only be new restrictions. and to bring more regular themselves on being a “dif- Democratic Rep. Ro Khan-
able to sell their positions Interactive Brokers also people into investing. The ferent breed of investors.” na, whose California district
and not open new ones placed option trading of company has forced huge, The 28-year-old school op- sits in Big Tech’s Silicon Val-
in some cases, and Rob- AMC, BlackBerry, Express, ground-shaking changes erations manager in Wash- ley, said the GameStop ep-
inhood will try to slow the GameStop and Koss “into for the brokerage indus- ington, D.C., said his par- isode “has demonstrated
amount of trading using liquidation,” citing extraor- try, such as its decision to ents immigrated from El the power of technology
borrowed money. dinary volatility in the mar- charge zero commissions Salvador and he was the to democratize access to
Besides GameStop, Robin- kets. It also tightened mar- for customers trading stocks first person in his family to American financial institu-
hood said trading in stocks gin requirements indefinite- and exchange-traded buy stocks when he started tions, ultimately giving far
such as AMC Entertain- ly on “short stock positions.” funds. That’s why some us- using the app in 2017. He’s more people a say in our
ment, Bed Bath & Beyond, Charles Schwab and TD ers took Thursday’s actions since made several thou- economic structures.” q

Attacks on individuals fall as cybercrime shifts tactics

By SARAH SKIDMORE SELL revenue in minutes as hun- has grown from less than According to the ITRC re- companies they work for.
AP Personal Finance Writer dreds of individual identity $10,000 per event in 2018 port released Thursday, Additionally, the pan-
Cybercriminals shifted theft attempts over months to more than $233,000 per even with the decline, demic may have fueled
away from stealing individ- or years. event in 2020. there were still 300.5 mil- some changes, with em-
ual consumers’ information According to cybersecu- However, experts urge lion individuals impacted ployees working remotely
in 2020 to focus on bigger, rity firm Coveware, the av- consumers not to let down by data breaches in 2020. and potentially exposing
more profitable attacks on erage ransomware payout their guard. Although this figure may their company networks
businesses, according to include repeats, where a to criminals. There was also
a report from the Identity person is victimized mul- an increase in unemploy-
Theft Resource Center. tiple times. ment fraud as cybercrimi-
The nonprofit, which sup- “People should under- nals tapped into those
ports victims of identity stand that this problem is systems, which were over-
crime, found that the num- not going away,” said Eva whelmed with claims and
ber of U.S. data breaches Velasquez, ITRC’s presi- new protocols.
fell 19% in 2020 to 1,108. dent and CEO. “Cyber- Velasquez urged consum-
But the number of individ- criminals are simply shifting ers to remain vigilant in
ual victims of such cyber- their tactics to find a new protecting their personal
crimes fell 66% compared way to attack businesses and professional informa-
with the year prior. and consumers.” tion. Criminals will continue
Ransomware and phishing One rising trend is attacks to use personal informa-
attacks are now the pre- on third parties, such as a tion even if the means by
ferred form of data theft vendor, that would yield which they obtain it has
because they require less access to multiple organi- changed.
effort and generate bigger zations through a single at- “We are not out of the
payouts. The ITRC said that tack. Often, the organiza- woods,” she said. “It’s
one ransomware attack This June 19, 2017 file photo shows a person working on a laptop tion is smaller, with weaker not time for consumers to
in North Andover, Mass.
can generate as much Associated Press security measures than the breathe a sigh of relief.”q