DraftKings Confirms $300,000 Of Customers’ Funds Taken In Hack

DraftKings Sportsbook released a public statement on Monday acknowledging that certain customers were facing unusual account activity. The hacking incident resulted in approximately $300,000 of customer funds being affected.

Paul Liberman, DraftKings’ co-founder and president for global technology and product, stated that the company had confirmed no breach in the betting platform’s systems. He added that they believe the customers’ login information was compromised on other websites and subsequently utilized to access their DraftKings accounts.

DraftKings will ensure that customers affected by the hacking incident receive full compensation.

According to a report published by The Action Network, numerous customers shared their accounts of observing unanticipated withdrawals amounting to several hundred dollars from their bank accounts. Moreover, these customers encountered difficulties while attempting to log into their accounts as their passwords and phone numbers for two-factor authentication had been modified.

In response to DraftKings’ tweeted statement, a user expressed their belief that the company’s decision to permit account changes without additional confirmation was irresponsible.

Major swings in stock occur as a result of DraftKings’ Q3 results.

Distrust Of Online Financial Transactions 

After the hacking incident, DraftKings experienced a 5% drop in its shares on Monday. Nevertheless, the stock’s value has since rebounded and is now close to the value it had at the end of the previous Friday.

However, there is a growing worry among customers about conducting financial transactions on various platforms. According to CNBC, FanDuel has reported a rise in hacking attempts on its platforms, although these attempts have not been successful thus far.

In a statement, FanDuel emphasized the significance of maintaining strong cybersecurity measures and urged their customers to remain alert and promptly report any signs of potential account compromise. This reminder comes in light of the recent downfall of FTX, a new cryptocurrency exchange, which experienced a rapid decline in valuation from $32 billion to bankruptcy within days. This event triggered a major shock in the cryptocurrency market, resulting in a massive loss of one trillion dollars.

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Keeping Betting Accounts Secure

The assault on DraftKings’ users is classified as a credential stuffing attack, where hackers employ login credentials obtained from other breaches to attempt access on various platforms, occasionally achieving successful logins.

Security experts have offered valuable advice on enhancing account security. One crucial method involves avoiding the reuse of passwords. Considering the difficulty in remembering multiple passwords, experts suggest the use of password manager tools. These programs enable users to create and store strong, distinctive passwords for each account.

Another option is to establish multi-factor or two-factor authentication, which involves an extra verification step following the entry of the correct password and username. This additional step could include receiving a unique code via text or email. By implementing this method, it becomes more difficult for hackers to gain access to an account, even if they possess the correct login credentials.