DraftKings stock dips over 10% on report of hack that drained customer accounts (update)
DraftKings (NASDAQ:DKNG) shares dove lower in mid-morning trading on Monday after a report from The Action Network that customer accounts were compromised.
According to the outlet, a number of customers were hit with sizable withdrawals and were locked out of accounts as hackers changed login details. The company acknowledged an account issue in a tweet late on Sunday evening via its customer support Twitter account.
“We are aware of reports of customers having issues with their accounts, and we are investigating,” the tweet read. “If any customers are having issues with their accounts, please contact Customer Experience Team at firstname.lastname@example.org.”
The tweet received a number of angry replies from customers echoing the report’s allegations.
“Messaged the "24/7" support team multiple times as my money was being stolen,” one such reply read. “Could have easily been stopped in real time as I identified the scam immediately but no one was there on the 2 busiest sports betting days of the week.”
The company told SeekingAlpha that the DraftKing's website was not hacked, but rather that users login information was compromised via other websites where users utilized the same passwords.
"We have seen no evidence that DraftKings’ systems were breached to obtain this information,” Paul Liberman, co-founder and President Global Technology and Product, said in a statement provided to SeekingAlpha. “We have identified less than $300,000 of customer funds that were affected, and we intend to make whole any customer that was impacted.”
Shares of the Boston-based online gambling company fell 10.23% shortly after the report’s publication, but moderated losses to near 5% into the afternoon session.
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