Rogue waves are abnormally large waves which appear unexpectedly and have attracted considerable attention, particularly in recent years. The one space, one time (1+1) nonlinear Schrodinger equation is often used to model rogue waves; it is an envelope description of plane waves and admits the so-called Pergerine and Kuznetov-Ma soliton solutions. However, in deep water waves and certain electromagnetic systems where there are two significant transverse dimensions, the 2+1 hyperbolic nonlinear Schrodinger equation is the appropriate wave envelope description. Here we show that these rogue wave solutions suffer from strong transverse instability at long and short frequencies. Moreover, the stability of the Peregrine soliton is found to coincide with that of the background plane wave. These results indicate that, when applicable, transverse dimensions must be taken into account when investigating rogue wave pheneomena.