• Loading stock data...
Monday, December 9, 2024
Tune in on Dec. 11 at 1:05 p.m. ET for our last Future of Sports virtual summit of the year – Future of Sports: Marketing! Register Now

Major Betting Sites Fortifying Security After Scammers Steal Thousands

  • Betting sites have been used to funnel money through unauthorized electronic bank transfers.
  • Sites have stepped up efforts to halt the incursions over the last several days.
Person using Draft Kings app while watching sports on TV
Danielle Parhizkaran-USA TODAY NETWORK

There’s been an uptick in unauthorized activity on multiple online sports betting operators recently as fraudsters have secured thousands of ill-begotten gains.

Two sources within the sports betting industry who are not authorized to speak publicly about the issue told Front Office Sports that all the major operators are bracing for more attacks. 

There appear to be two main ways scammers are currently going about using betting sites to commit the fraud: 

  • Scammers find personal and banking information to create an account on one of the betting sites from the dark web and elsewhere. 
  • Existing betting accounts have been accessed using email addresses and passwords that matched compromised login information on other sites. The phone number for two-factor authentication and password are changed, locking the true owner out of the account. 

Using either method, funds disappeared from checking accounts using unauthorized ACH (eCheck) withdrawls — often starting with a small amount followed by bigger withdrawal — until the account is drained. 

A DraftKings spokesperson said the company “wasn’t actually hacked.”

“We strongly encourage customers to 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 for the purposes of tracking betting information on DraftKings and other betting apps,” DraftKing co-founder Paul Liberman said in a statement. 

FanDuel sent an email out to customers Monday evening that warned “of a hack impacting some other sports betting websites.”

“Bad actors take advantage of the holiday season to strike when people are busy spending time with their families,” FanDuel said in the email. “Please stay vigilant and immediately report any suspicious activity by contacting FanDuel customer support.”

BetMGM has been among the betting companies who have been in contact with those impacted.

“We are aware of the report and are actively investigating the matter, working closely with our risk, payments and compliance teams,” BetMGM said in a statement to Front Office Sports. “Player safety and security is of utmost importance to us.”

Those impacted have taken to Twitter and Reddit to detail how they were defrauded. 

Sources told FOS the common thread in some of the fraud appears to be a payment processor used by many of the online sportsbooks, Global Payments subsidiary VIP Preferred Network.

“Our gaming business has been assisting law enforcement with an investigation into fraudulent accounts set up at unaffiliated third parties using stolen personal information,” Global Payments said in a statement to FOS. “There has been no security breach or fraudulent accounts opened at our gaming business in connection with this investigation.

“The protection of our customers and their clients’ information and funds is our top priority. We have been working closely with these third parties to ensure all impacted individuals receive refunds.”

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

DraftKings

Sens. Say DraftKings, FanDuel May Have Conspired to Crush Competition: ‘One Company’

The senators asked the FTC and DOJ to investigate the gambling companies.
Nov 2, 2024; Denver, Colorado, USA; Detailed view of a Wilson NBA basketball held by a referee during the second half between the Utah Jazz against the Denver Nuggets at Ball Arena

‘Obvious Weak Point’: Refs Remain an NBA Gambling Concern

A season after Jontay Porter, the biggest risk may not be players.
Sponsored

Racing Forward: How SailGP is Redefining High-Performance Sailing and Championing Gender Equality

SailGP is redefining high-performance sailing through their bold commitment to gender equality and their Women’s Performance Program.

Poker Pro Pleads Guilty to ‘Massive’ Sports Betting Tips Fraud

Cory Zeidman ran a scheme that amassed $25 million over 14 years.

Featured Today

Nov 2, 2024; Ann Arbor, Michigan, USA; Michigan Wolverines cheerleader runs with a flag before the game against the Oregon Ducks at Michigan Stadium.
opinion

College Football’s Billionaire Backer Era Begins

Is this the new normal in CFB recruiting?
LA Galaxy forward Dejan Joveljic (9) celebrates with midfielder Riqui Puig (10) after scoring a goal against Seattle Sounders FC in the second half in the 2024 MLS Cup Western Conference Final match at Dignity Health Sports Park
December 6, 2024

With or Without Messi, Major League Soccer Is Barreling Into the Future

After the Cup final, the league looks to accelerate its growth.
Dec 18, 2022; Lusail, Qatar; FIFA president Gianni Infantino claps during the awards ceremony after the 2022 World Cup final between Argentina and France at Lusail Stadium.
December 2, 2024

FIFA Wants More Matches. Resistance Is Growing Inside the Global Soccer World

Resentment and frustration over expanded schedules is nearing a breaking point.
November 30, 2024

U.S. Investors Are Gunning for England’s Small Soccer Clubs

Is another Hollywood-like success story possible among the U.K.’s smallest clubs?
DraftKings

DraftKings Lowers Full-Year Guidance After Brutal NFL Outcomes

DraftKings cited a tough start to the fourth quarter in lowering its 2024 guidance.
Nov 4, 2024; Kansas City, Missouri, USA; Kansas City Chiefs wide receiver DeAndre Hopkins (8) celebrates with quarterback Patrick Mahomes (15) after scoring against the Tampa Bay Buccaneers during the second half at GEHA Field at Arrowhead Stadium.
November 6, 2024

Missouri Becomes 39th State to Legalize Sports Gambling

Missouri was the only state with sports gambling on its ballot this election cycle.
Sports betting Analyst Steve Coughlin gives out high-fives on the set of ESPN's College Game Day at the University of Texas, ahead of the Longhorns' game against the Georgia Bulldogs in Austin, Oct. 19, 2024.
November 7, 2024

ESPN Bet at Critical Point As Penn Reports Quarterly Earnings

The two sides agreed to a 10-year deal last August.
Sponsored

How UBS Crafts Impactful Partnerships Across Sports, Arts, and Culture

As UBS continues to expand its impressive array of sports and entertainment partnerships, the company solidifies its position as a leader in wealth management.
November 5, 2024

On the Ballot: Sports Betting, Former Athletes Impacting the 2024 Election

Several U.S. Senate candidates have sports backgrounds, while Missouri voters will consider legalizing sports betting.
Tony Hinchcliffe at Donald Trump rally.
November 4, 2024

Sports Betting Companies Holding Comic at Arm’s Length After Trump Rally

Hinchcliffe drew criticism over his comments at a rally for Trump.
November 1, 2024

Polymarket Is Pushing Into Sports Betting

Once the ballots are counted, Polymarket needs to take on sports.
October 29, 2024

Parent of Action Network, Playmaker HQ Cuts More Than 100 Jobs

Better Collective laid off dozens of employees this week.