Betting sites urge caution after accounts accessed, funds withdrawn

On Monday, online sports betting operators were encouraging their customers to take steps to protect their accounts after several companies saw fraudulent activity in recent weeks.

DraftKings said Monday that a “small number” of betting accounts were accessed by unauthorized users, leading to the withdrawal of approximately $300,000 in client funds in an attack the company says was caused by theft of login information from third-party sites.

Sports betting media site The Action Network reported that at least one customer was locked out of their DraftKings account on Sunday and money was withdrawn from the bank account used to make deposits with the bookmaker.

“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, co-founder of DraftKings, said in a statement. “We have not seen any evidence that DraftKings systems were hacked to obtain this information. We have identified less than $300,000 in customer funds that have been affected, and we intend to repair any customers that have been hit.

“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 customer information. betting on DraftKings and other betting apps.”

Ryan Butler, a journalist who covers the video game industry, wrote on Twitter on Monday that his DraftKings account had been hacked and that FanDuel had sent him an email informing him that there had been an access attempt. to his FanDuel account.

FanDuel has reported increased activity from unauthorized actors attempting to access accounts, but “so far customers have not been impacted,” a company spokesperson said Monday afternoon. Caesars Sportsbook also said Monday that it was not impacted.

The unauthorized access to DraftKings came just weeks after several professional poker players reported opening unauthorized betting accounts in their names with BetMGM and using them to withdraw money from personal checking accounts. Todd Witteles, a well-known poker pro from California, said someone set up a sports betting account in his name in late October in West Virginia, deposited $10,000 from his checking account into the sports betting account and withdrew $7,500 from a Venmo debit card. the same day. Witteles estimates that more than 50 poker players encountered a similar problem at BetMGM, which mainly occurred in late October and early November. BetMGM said it is actively investigating the situation.

“The security of our customers’ accounts is of the utmost importance to us,” a BetMGM spokesperson said in a statement to ESPN on Friday. “We encourage all affected customers to contact our customer service directly.”

It is unclear if the incidents at DraftKings and BetMGM are related.

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