Consumer complaint received 2025-02-16 00:00:00
Product: Money transfer, virtual currency, or money service — Domestic (US) money transfer
Issue: Other transaction problem — 
Company: ROBINHOOD MARKETS INC.
State: NY

Complaint narrative:
The short version : Robinhood is illegally preventing its customers from withdrawing funds from their accounts unless they provide facial biometric data they do not have the authority to be collecting. Despite there being many other ways to verify identity, they are refusing to return funds to users who never agreed to using biometric data.

The details : I have had an account with Robinhood since XXXX. In that time, I have only ever linked a single bank account to the account, from which funds were transferred into Robinhood to invest, and occasionally transferred back to when funds were withdrawn. 

6 Months ago, on XX/XX/XXXX, I transferred {$1700.00} from my Robinhood account into my bank account without issue. It was to my surprise, on XX/XX/XXXX, that I attempted to initiate a transfer of {$400.00} from my Robinhood account to the same bank account I've been connected to for over 6 years, and I was met with a prompt to " verify my identity ''. Initially, the prompt asked that I upload a picture of the front and back of my government issued ID, so I took a picture of the front and back of my driver 's license and submitted it. After doing so, I was met with a prompt to scan my face for biometric data. This was a deal-breaker for me. 

I have never in my life consented to giving any company I've done business with any of my biometric data, and I have never consented to giving Robinhood my biometric facial data at any point during my business with them. I contacted customer support to find out how to withdraw the amount without providing this data, as there are plenty of other ways to verify my identity. To my surprise, they refused to assist me, and claimed that I would have to submit " selfies '' ( the app asks for pictures from multiple angles ) to verify my identity to withdraw funds. As a software engineer with extensive knowledge in data collection and, I knew there was no logic to this ask. Robinhood is not in possession of my facial biometric data, and therefore they have no means to use that data to confirm my identity, because they have nothing to compare it against. This was a bald-faced attempt at invasive, unjustified, and unwarranted data collection.

After an extended back-and-forth, the support person, " Deep '', claimed that their customer agreement grants them the authority to withhold my funds from me until I submit facial biometric data. The section of their user agreement they claimed granted them this authority ( section 6, paragraph 2 ) reads : " What this means for you : When you open or apply to open an Account, Robinhood will ask for your name, U.S. residential address, date of birth, social security number, telephone number, citizenship, and other identifying information that will allow Robinhood to identify you. Robinhood may also ask for copies of your drivers license, passport, other unexpired, government-issued identifying documents with a photograph, or other identifying documents. From time to time, Robinhood may ask you to confirm or reverify your identity, or may require that you provide certain additional documents, as necessary. '' When I responded that the paragraph they pointed to did not, in fact, grant them the authority to withhold my funds unless I give them access to my facial biometric data, I explained that what that paragraph granted access to was : - My name - My US Residential address - My social security number - Telephone number - Citizenship - Other identifying information that will allow Robinhood to identify me- Copies of my driver 's license - Passport - Other expired, government-issued identifying documents with a photograph - Other identifying documents.

I explained that I was glad to re-verify my identity using any combination of the above listed articles, but that according to that agreement, no user has agreed to provide Robinhood access to their biometric data. I also questioned why Robinhood insisted on collecting a 3D scan of my face to withdraw funds when : - I was attempting to transfer funds to the only bank account that has ever been connected to my Robinhood account.

- I was willing to provide my SSN, images of my driver 's license, verified transaction history, phone number, email, or any other identifying information available to prove my identity.

- I was able to withdraw over 4 times the amount I was attempting to withdraw 6 months ago.

- I never agreed to allowing them to use my facial biometric data to withdraw funds.

The support person again refused, and this time pointed to paragraph 6, section 3 as the justification, which reads : " You understand that Robinhood may take steps to verify the accuracy of the information you provide to Robinhood relating to your Account in your application or otherwise. You authorize Robinhood or its agents or third-party vendors to contact any person or firm noted therein or in any other information you may provide to Robinhood from time to time, or any other normal sources of debit or credit information and other similar databases, and authorize any such person or entity to furnish such information about you as may be requested or required by Robinhood. You acknowledge that Robinhood may restrict your access to your Account pending such verification. You will provide prompt notification to Robinhood of any changes in the information including your name, address, e- mail address, and telephone number ''.

I then explained that nowhere in that paragraph does the subject of biometric data come up, nor could Robinhood could not possibly use my facial biometric data to verify my identity, as it currently does not possess that information and therefore has nothing to compare newly collected data against, but again was refused and told that I would be required to provide 3D scans of my face to withdraw funds.

Robinhood is now holding my funds hostage and refuses to return my money to me unless I provide them with 3D scans of my face, which I never agreed to, and never will. I suspect this is newly enforced policy they're enacting across all of their users, which means Robinhood is now illegally collecting biometric data that their customers never agreed to provide, and holding their funds hostage if they refuse to do so.

I have an email chain from customer support, screenshots of my account and transaction history, and am willing to provide other necessary information upon request.

Company response to consumer: Closed with explanation