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DraftKings Shares Fall Following Hack Attack on Customer Accounts
DraftKings shares tumbled down almost 11% after the company announced on Twitter on November 21 that customer accounts were hacked and funds were withdrawn from them.
DraftKings Accounts Hack Attack Affected Less Than $300,000 Customer Funds
The DraftKings statement, which the company posted on Twitter on Monday, highlights that it is a question of not more than $300,000 and that all customers who have been affected by the hack attack will be reimbursed by the company.
The company further noted that there are no signs that DraftKings systems were compromised or breached in any way.
Paul Liberman, co-founder and president of DraftKings, noted that, according to the company investigation, it is most likely that the login information of DraftKings customers was compromised on other websites, and then it was used on the DraftKings website to withdraw funds.
Liberman encouraged DraftKings customers to use unique passwords and not to use the same login details for more than one account.
DraftKings shares started falling when customers began reporting inexplicable fund withdrawals from their accounts on the DraftKings website or connected bank accounts and following a report by sports wagering media website the Action Network.
DraftKings Customers Reported Unusual Activities
According to a report by the Action Network, several customers experienced issues with their DraftKings accounts and noticed that funds were withdrawn from their bank accounts.
A customer from Tennessee, for example, noticed five withdrawals for $500 from his bank account that were done to DraftKings but when he tried to log in to his account it was not possible. It also turned out that someone had changed the phone number on his account so he was completely locked out.
Another customer from Kansas had $437 withdrawn from his account on the DraftKings website, while a Colorado customer also had the phone number in his DraftKings changed and funds are withdrawn from his bank account that he previously used to deposit funds to DraftKings.
Reports from illegitimate attempts at account access have also come from FanDuel, which joined DraftKings in urging customers to use unique passwords and not share their account details with anyone.
Other betting sites also reported similar unauthorized activities with fraudulent accounts being set up and then funds being withdrawn. For example, such accounts were set up with BetMGM and were used to illegally withdraw funds from customer bank accounts.
All these hack attacks come against the backdrop of the collapse of cryptocurrency platform FTX, which is already leading to people mistrusting financial transactions on the internet.
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Silvia has dabbled in all sorts of writing – from content writing for social media to movie scripts. She has a Bachelor's in Screenwriting and experience in marketing and producing documentary films. With her background as a customer support agent within the gambling industry, she brings valuable insight to the Gambling News writers’ team.
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April 19, 2024