Online sports betting operators Monday encouraged customers to take steps to protect their accounts after multiple companies saw fraudulent activity in recent weeks.
DraftKings said Monday that a “small number” of betting accounts had been opened by unauthorized users, leading to about $300,000 in customer funds being withdrawn in an attack the company said was caused by stealing credentials from third-party sites.
Sports betting media site The Action Network reported that at least one customer lost access to their DraftKings account on Sunday and money had been taken from the bank account used to make deposits at the sportsbook.
“DraftKings is aware that some customers are experiencing irregular activity with their accounts. We currently believe that these customers’ credentials have been compromised on other websites and then used to access their DraftKings accounts where they used the same credentials ,” Paul Liberman, DraftKings co-founder, said in a statement. “We have seen no evidence that DraftKings’ systems have been breached to obtain this information. We have identified less than $300,000 in customer assets that are affected, and we plan to make every affected customer healthy.
“We strongly recommend that customers 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 to track gambling information on DraftKings and other gambling apps .”
Ryan Butler, a journalist who covers the gaming industry, wrote on Twitter Monday that his DraftKings account had been hacked and that FanDuel emailed him that an attempt had been made to access his FanDuel account.
FanDuel reported increased activity from unauthorized actors trying to access accounts, but “customers have not been affected so far,” a company spokesperson said Monday afternoon. Caesars Sportsbook also said Monday it was unaffected.
The unauthorized access at DraftKings came just weeks after multiple professional poker players reported that unauthorized betting accounts had been created in their name at BetMGM and were being used to withdraw funds from personal checking accounts. Todd Witteles, a well-known poker pro from California, said that in late October in West Virginia, someone opened a sports betting account in his name, transferred $10,000 from his checking account to the sports betting account, and put $7,500 into a Venmo debit card on the same day. Witteles estimates that more than 50 poker players experienced a similar problem at BetMGM, usually occurring 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 affected customers to contact our customer service directly.”
It is not known if the incidents at DraftKings and BetMGM are related.