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Kings He said on Monday that there was no evidence that the online betting platform’s systems had been hacked after a report that some users had been hacked.
An unknown number of users have discovered unusual activity associated with their DraftKings account that has led to withdrawals from their bank accounts, according to a report by The Action Network and social media posts. Several users described being locked out of their account before noticing the regression.
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“DraftKings is aware that some customers are experiencing irregular activity with their accounts. We currently believe that these customers’ login information was compromised on other websites and then used to access their DraftKings accounts where they used the same login information,” Paul Lieberman, co-founder said. Draughtskings and its global product and technology president, in a statement.
The company said it had identified fewer than $300,000 in customer funds that were affected by the unusual activity and that it intended to “verify any affected customer.”
DraftKings shares fell 5% Monday.
This incident comes at a time when users are increasingly suspicious of online financial transactions following the recent crash of the FTX crypto platform. DraftKings said it strongly encourages users to use unique passwords.
DraftKing competitor FanDuel told CNBC on Monday that it has seen a recent uptick in activity by hackers trying to break into the platform. The company said that attempts have so far been unsuccessful.
“We remind our customers of the importance of good hygiene for cybersecurity. FanDuel encourages customers to remain vigilant and immediately report suspicious activity if they suspect their account has been hacked,” the company said in a statement.