Update (Friday, May 19):
A DraftKings spokesperson provided the following comment on the credit stuffing charges that impacted their platform:
"The safety and security of our customers’ personal and payment information is of paramount importance to DraftKings. We worked with law enforcement in catching the alleged bad actor(s), and we want to thank the Department of Justice, including the FBI and U.S. Attorney, Southern District of New York, for their prompt and effective action. As we stated previously, bad actor(s) were able use login credentials obtained from a third-party source to gain access to certain user accounts. When the identified credential stuffing incident occurred in November 2022, DraftKings provided notice to customers in relevant jurisdictions and restored amounts for a limited number of users who may have had funds improperly withdrawn from their accounts."
Original Article (Thursday, May 18)
Were you alarmed in late November when your DraftKings Daily Fantasy or sports betting account was depleted for no apparent reason?
Well, a charge has been made in the case, which explains how and why a significant amount of DraftKings users saw their balance go to zero.
Federal prosecutors announced on Thursday that an 18-year-old Wisconsin man, Joseph Garrison, hacked into approximately 1,600 DraftKings accounts and stole around $600,000. DraftKings' biggest competitor, FanDuel, did not have any compromised accounts, though that wasn't for a lack of trying, but rather because of successful security measures.
According to CNBC, FanDuel representatives stated that, "Our security did its job."
Following the cybersecurity attack, all funds were returned into users' accounts, though there was a period of stress for a number of customers who were concerned about the status of their accounts. Back in November, DraftKings warned that the data for approximately 67,000 users may have been compromised.
Garrison faces a maximum of 20 years if convicted, but it is likely that he will not receive the maximum sentence. He was also working with others in the operation, but Garrison was the leader and main conspirator in the case.
It is unclear if DraftKings adjusted any of its security systems based on the attack. The sportsbook is still trying to catch up with FanDuel in the sports betting market. FanDuel reached over 50% market share in the United States, as of the beginning of March.
