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design kings said Monday there was no evidence the online gambling platform’s systems had been breached after a report that some users had been hacked.
An unknown number of users discovered unusual activity related to their DraftKings account that led to withdrawals from their bank accounts, according to a report from The Action Network and social media posts. Several users described being locked out of their accounts before noticing the draws.
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“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 and president of global technology and products said in a statement.
The company said it has identified less than $300,000 in customer funds impacted by the unusual activity and plans to “sanitize every customer that was impacted.”
The incident comes at a time when users are becoming increasingly skeptical about online financial transactions following the recent collapse of crypto platform FTX. DraftKings said it strongly encourages users to use unique passwords.
Shares of the company fell as much as 11% Monday after the report, before recovering slightly. The stock fell about 5% in late trading.