Multiple DraftKings user were accounts hacked for $300,000

Multiple DraftKings user accounts were hacked for $300,000

DraftKings, a popular site for daily fantasy sports, said on Monday that many of its users’ accounts had been stolen by suspicious activity on other sites. Hackers on the Internet quickly stole the money of hundreds of thousands of people. The well-known sports betting company tried to settle on Tuesday.

$300,000 was compromised:

DraftKings co-founder Paul Liberman pledged to “make whole every customer that was damaged” after the attack stole $300,000. DraftKings approved one customer’s $437 Houston withdrawal request at 10:11 p.m. CST on Sunday. He lived far from Houston, so the customer thought the request was fake. Another Kansas City, Missouri DraftKings user lost $19,439,00 at 8:30 pm CST on Sunday but recovered it 40 minutes later.

An unnamed source

Liberman says, “We now think that these customers’ login information was stolen from other websites and used to get into their DraftKings accounts, where the same login information was used.”

The company says that only about $300,000 of its customers’ money was stolen and that none of its own systems were hacked. “We haven’t seen any proof that DraftKings’ systems were broken into to get this information,” said the co-founder of DraftKings.

No one has found out where the fraudulent activity on the account came from. Cybercrime experts say that the hackers may have used the “credential stuffing” method, which is when the same personal passwords are used across different internet domains. Once the stolen credentials are in the hands of thieves, they will test them on new sites.

Prevention of credential stuffing:

“We strongly encourage that clients do not share their passwords with anyone,” Liberman said. DraftKings recommends unique passwords for all websites.

DraftKings claims its systems were not breached, but a case this large may take months to resolve. But people who bet on sports have shown that they can lose patience if the outcome they want takes longer than expected. Liberman stated: “DraftKings aims to reimburse all customers in full for any lost monies.”

Stock decline:

There were reports of some customers receiving reimbursements on Tuesday morning, but there were still accounts belonging to other people who were vulnerable. As a result, DraftKings stock initially dropped 10% in response to the news on Monday, closing at $14.29 per share. DraftKings was trading around $14.60 per share as of Tuesday afternoon, up more than 2.25% from the Monday session.