Sports

DraftKings not only sports betting platform dealing with hackers

DraftKings isn’t the only sports betting platform that has been hacked.

Multiple sports betting platforms have seen increased unauthorized activity in accounts, resulting in funds disappearing, according to Front Office Sports. And the sports betting industry is bracing for more hackers attacking accounts, too.

Front Office Sports added the two ways most scammers have been committing the fraud: Finding personal and banking information to create an account on one of the betting sites from the dark web or using email addresses and passwords that matched compromised login information on other sites to access existing betting accounts.

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In this photo illustration the FanDuel logo of a sports betting company is seen on a smartphone.

In this photo illustration the FanDuel logo of a sports betting company is seen on a smartphone.
(Pavlo Gonchar/SOPA Images/LightRocket via Getty Images)

DraftKings is catching lots of heat from customers who were hacked, with close to $300,000 in funds being affected.

Customers affected were locked out of their accounts and some had sizable withdrawals from accounts, all while a direct customer service number wasn’t found. However, DraftKings doesn’t believe they were directly hacked.

“DraftKings is aware that some customers are experiencing irregular activity with their accounts,” Paul Liberman, co-founder of DraftKings, said in a statement obtained by WHD News Digital. “We currently believe that the login information of these customers was compromised on other websites and then used to access their DraftKings accounts where they used the same login information.  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 customer that was impacted.

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“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 purposes of tracking betting information on DraftKings and other betting apps.”

FanDuel also sent out an email to its customers, warning “of a hack impacting some other sports betting websites.”

The logo for DraftKings is displayed on a laptop computer in an arranged photograph taken in Little Falls, New Jersey, U.S., on Wednesday, Oct. 7, 2020. The pricing of a DraftKings Inc. share sale combined with a fresh wave of Covid-19 infections across the National Football League sent shares of the online gaming company tumbling this week.

The logo for DraftKings is displayed on a laptop computer in an arranged photograph taken in Little Falls, New Jersey, U.S., on Wednesday, Oct. 7, 2020. The pricing of a DraftKings Inc. share sale combined with a fresh wave of Covid-19 infections across the National Football League sent shares of the online gaming company tumbling this week.
(Gabby Jones via Getty Images)

BetMGM and others have been contacted by customers about being affected by hackers.

“We are aware of the report and are actively investigating the matter, working closely with our risk, payments and compliance teams,” BetMGM said in a statement to Front Office Sports. “Player safety and security is of utmost importance to us.”

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Stories from customers said that, despite having two-factor authentication, hackers were able to change the account’s phone numbers. So, the code needed to log in to the account will go the hacker’s phone instead.

Due to the situation, DraftKings stock took a bit of a dive on Monday, with DraftKings later acknowledging the hacking.

“We are aware of reports of customers having issues with their accounts, and we are investigating,” they tweeted. “If any customers are having issues with their accounts, please contact Customer Experience Team at [email protected]

DraftKings logo displayed on a mobile phone, a basketball and playing cards are seen in this illustration photo taken in Krakow, Poland on September 21, 2021.

DraftKings logo displayed on a mobile phone, a basketball and playing cards are seen in this illustration photo taken in Krakow, Poland on September 21, 2021.
(Jakub Porzycki/NurPhoto via Getty Images)

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Many customers experienced hacking on Sunday during one of the busiest sports betting days of the week with the NFL playing. There was also the start of the 2022 FIFA World Cup, which has added more betting opportunities to the table for the next few weeks.

 

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