Some DraftKings Accounts Compromised in Credential Stuffing Attack; Company Promises to Return Lost Funds

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DraftKings has admitted that some of its customers have been the target of credential stuffing attacks that let attackers take over their accounts and transfer money.

DraftKings is a sports betting company, meaning users have funds in their accounts. Some users have even linked their bank accounts to DraftKings, making them even more attractive to criminals.

According to a BleepingComputer report, users started to report problems with their DraftKings accounts over the weekend. The tactic attackers used was very direct, as they would access the accounts, likely with information obtained from other data breaches, and quickly withdraw money.

Criminals also rapidly changed the 2FA settings by redirecting to another phone number, locking out the actual owners of the accounts. Since many users link their bank accounts to DraftKings, some withdrawals were made directly from the banks.

“We currently believe that the login information of these customers was compromised on other websites and then used to access their DraftKings accounts where they used the same login information,” said DraftKings President and Cofounder Paul Liberman.

“We have seen no evidence that DraftKings’ systems were breached to obtain this information. We have identified less than $300,000 of customer funds that were affected, and we intend to make whole any customer that was impacted.”

The company says that criminals likely used credentials from other data breaches and advised DraftKings users to change their credentials immediately and replace them with something unique for this online service. They also said users should unlink the DraftKings and banking accounts. Setting up 2FA is also advisable for anyone who hasn’t done so already.