$300,000 in client funds compromised by DraftKings hack
Paul Liberman, co-founder and president of global technology and product for DraftKings, has confirmed in a statement that a large-scale hacking attack has compromised a number of client accounts containing $300,000 (£252,745/€295,000) in money.
The breach was initially disclosed by the sports betting intelligence website Action Network. Customers stated in the post that hundreds of dollars were withdrawn from their connected bank accounts to their DraftKings accounts.
In addition, the intrusion rendered clients' two-factor authentication ineffective because their phone numbers were altered.
Since the publication of the study, Action Network stated that DraftKings' stock price had decreased by almost 10%.
There was "no evidence" that DraftKings' own servers had been compromised, according to Liberman. Rather, he stated that the consumers' information had been hacked elsewhere and then used to access their DraftKings accounts.
“DraftKings is aware that some customers are experiencing irregular activity with their accounts,” said Liberman. “We currently believe that the login information of these customers was compromised on other sites and then used to access their DraftKings accounts, where they used the same login information.”
“We see no evidence that DraftKings’ systems were breached to obtain this information.”
The message then confirmed the affected amount and recommended consumers to utilise distinct login credentials for DraftKings and all other sites.
“We have identified less than $300,000 of customer funds that were affected, and we intend to make whole any customer that was impacted,” Liberman continued.
“We strongly encourage customers to use unique passwords for DraftKings and all other sites, and we strongly recommend that customers do not share their passwords with anyone, including third party sites for the purpose of tracking betting information on DraftKings and other betting apps.”
DraftKings stated earlier this month that their revenue increased by 135.8% in the third quarter of the year.
By fLEXI tEAM