Following a claim that some users had their accounts compromised, DraftKings stated on Monday that there is no proof the online betting platform’s security was penetrated.
According to a report by The Action Network and posts on social media, an unknown number of users detected suspicious behaviour connected with their DraftKings account that resulted in withdrawals from their bank accounts. Before becoming aware of the drawdowns, several users reported being locked out of their accounts.
“DraftKings is aware that some clients’ accounts are showing unusual activity. In a statement, Paul Liberman, co-founder and president for global technology and product at DraftKings, stated that they 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.
Less than $300,000 in customer funds, according to the company, were impacted by the anomalous activity. The company stated it plans to “make whole any consumer that was harmed.”On Monday, shares of DraftKings plummeted 5%.
The event occurs at a time when consumers are growing more wary about making financial transactions online in the wake of the recent failure of the cryptocurrency platform FTX. DraftKings stated that it strongly advises users to select original passwords.
FanDuel, a rival of DraftKings, informed CNBC on Monday that recent activity by hackers attempting to infiltrate the platform had increased. The corporation claimed that the attempts have been fruitless thus far.
FanDuel issued a statement saying, “We remind our clients of the significance of basic cybersecurity hygiene. FanDuel urges users to exercise caution and to report any unusual activity right away if they think their account has been compromised.