DraftKings denies platform breach, says around $300,000 stolen from compromised accounts
Gaming giant DraftKings has confirmed that around $300,000 was stolen from compromised customer accounts on the platform, but says its own systems were not breached.
In a statement to The Record, DraftKing co-founder Paul Liberman said the company is aware that “some customers are experiencing irregular activity with their accounts.”
“We currently believe that the credentials of these customers were compromised on other websites and then used to access their DraftKings accounts where they used the same credentials,” Liberman said.
“We have seen no evidence that DraftKings’ systems were breached to obtain this information. We have identified less than $300,000 of customer funds that were affected, and we intend to make whole any customers that were affected.”
He added that the site encouraged customers to use unique passwords on the platform and on all other sites.
They also urged customers not to share passwords with anyone, “including third-party sites for the purpose of tracking game information on DraftKings and other game apps.”
Several people who had their accounts breached spoke to the Action Network and told the site they noticed fees from DraftKings ranging from $400 to $4,500.
On Twitter, hundreds of customers complained that their accounts were breached, claiming that they used unique passwords and did not share them with anyone.
DraftKings stock fell as much as 11% on Monday after reports of accounts being hacked began to emerge.
The situation prompted other gambling platforms such as FanDuel to email their own customers about the situation.
FanDuel reminded customers of the “importance of good cybersecurity hygiene” and similarly encouraged users to have unique passwords and enable multi-factor authentication.
“Bad actors take advantage of the holiday season to strike when people are busy spending time with their families,” they said.
“Please be vigilant and immediately report any suspicious activity by contacting FanDuel Customer Support either in the app or via our support page support.fanduel.com.”