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DraftKings said on Monday there was no evidence that the online betting platform’s systems had been hacked following 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 accounts before noticing the withdrawals.
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“DraftKings is aware that some customers are experiencing irregular activity with their accounts. We currently believe that these customers’ login credentials were compromised on other websites and then used to access their DraftKings accounts where they used the same login information,” Paul Liberman, DraftKings Co-Founder and President for Global Technology and Products said in a statement.
The company said it has identified less than $300,000 in client funds that have been affected by the unusual activity and that it intends to “repair any client that has been impacted.”
DraftKings shares fell 11% on Monday after the report before recovering slightly. The stock was down about 5% at the end of the session.
The incident comes at a time when users are increasingly skeptical about online financial transactions following the recent collapse of crypto platform FTX. DraftKings said it strongly encourages users to use unique passwords.
DraftKing competitor FanDuel told CNBC on Monday that it has seen a recent increase in activity from hackers trying to break into the platform. Attempts have so far been unsuccessful, the company said.
“We remind our customers of the importance of good cybersecurity hygiene. FanDuel encourages customers to remain vigilant and report suspicious activity immediately if they suspect their account has been compromised,” the company said in a statement. a statement.