DraftKings’ co-founder and president of global technology and product, Paul Liberman, has released a statement confirming that a mass hacking has taken place on a number of customer accounts affecting $300,000 in funds.
The hack was first reported by sports betting insights site Action Network. In the article, customers said that hundreds of dollars had been withdrawn from bank accounts that had been linked to their DraftKings accounts.
In addition, customers’ two-factor authentication had been rendered useless as the hack had allowed their phone numbers to be changed.
Since the report was published, Action Network reported that DraftKings’ stock had fallen by over 10%.
Liberman said that there had been “no evidence” to say DraftKings’ own servers had been compromised. Rather, he said customers’ information was compromised elsewhere and used to log in to their DraftKings accounts.
“DraftKings is aware that some customers are experiencing irregular activity with their accounts,” said Liberman. “We currently believe that the login information of these customers was compromised on other sites and then used to access their DraftKings accounts, where they used the same login information.”
“We see no evidence that DraftKings’ systems were breached to obtain this information.”
The statement went on to confirm the amount that was affected, and urged customers to use unique login information for DraftKings and all different sites.
“We have identified less than $300,000 of customer funds that were affected, and we intend to make whole any customer that was impacted,” Liberman continued.
“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 purpose of tracking betting information on DraftKings and other betting apps.”
Earlier this month, DraftKings’ reported that its revenue had grown by 135.8% in the third quarter of the year.