• Loading stock data...
Saturday, June 22, 2024

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.”

Copy Link
Link Copied
Link Copied

What to Read

Jan 7, 2024; San Francisco, California, USA; Toronto Raptors forward Jontay Porter (11) takes a three-point shot against the Golden State Warriors during the second half at Chase Center.

‘Bound to Happen’: The Age of the Sports Betting Scandal Has Arrived

A banishment, betting scheme, and guilty plea all in one scandal-filled span.

How HOKA is Reimagining the NIL Relationship

HOKA, the renowned athletic footwear and apparel brand, is betting on a new reality with NIL.
Tucupita Marcano

Lifetime Ban Is More Proof of Sports’ Complicated Betting Relationship

MLB suspends five players, including one permanently, for betting on big league games.
Jul 9, 2023; Phoenix, Arizona, USA; Pittsburgh Pirates Tucupita Marcano (30) fields a ground ball against the Arizona Diamondbacks at Chase Field.

MLB Bans Padres Infielder for Betting on Baseball, Suspends Four Others

On the Pirateslast season, Tucupita Marcano bet on Pittsburgh’s own games.
podcast thumbnail mobile
Front Office Sports Today

How Women’s Sports Media is Charting Its Own Path


Featured Today

Jan 3, 2022; Pittsburgh, Pennsylvania, USA; General view of the NFL shield logo signage before the Pittsburgh Steelers host the Cleveland Browns at Heinz Field.

Odds Stacked Against NFL in Multibillion-Dollar Sunday Ticket Trial

Why the class action trial does not look promising for the league.
June 8, 2024

‘Experimental in Nature’: The Rapid, Confounding Rise of Streaming Bundles

Here’s why confusion continues to outweigh solutions in the streaming package boom.
June 2, 2024

The Nostalgia Market: Michael Jordan’s Memorabilia Remains Coveted, With Caveats

Due to scarcity, and sometimes, items’ undisclosed whereabouts, this world has limitations.
June 1, 2024

The Pac-12 Wants Everybody to Know That It Isn’t Dead Yet

With a broadcast studio and two schools, the league plans to rebuild.
Mar 11, 2024; Denver, Colorado, USA; Toronto Raptors center Jontay Porter (34) reacts after a play in the third quarter against the Denver Nuggets at Ball Arena.

Conspirator Arrested in Federal Complaint Tied to Jontay Porter Scheme

Authorities arrested Long Phi Pham at JFK airport Monday.
June 3, 2024

Padres Infielder Could Face Lifetime MLB Ban Over Gambling

As a Pirate last season, Tucupita Marcano allegedly bet on Pittsburgh games.
Dec 14, 2023; Los Angeles, CA, USA; Ippei Mizuhara, the translator for Los Angeles Dodgers designated hitter Shohei Ohtani, during an introductory press conference at Dodger Stadium.
June 4, 2024

Shohei Ohtani’s Former Interpreter Pleads Guilty to Stealing $17 Million, Tax Fraud

Mizuhara faces up to 33 years in prison, with sentencing in October.

How HOKA is Reimagining the NIL Relationship

HOKA, the renowned athletic footwear and apparel brand, is betting on a new reality with NIL.
May 30, 2024

More States Hiking Sports Betting Taxes, Eyeing Revenue Windfall

Illinois more than doubles its peak tax rate on sportsbook operators, with others likely to follow.
May 20, 2024

MLB Officially Investigating Gambling Allegations Against Ohtani’s Close Friend and Longtime Teammate

David Fletcher reportedly used the same bookmaker as Ohtani’s former interpreter.
May 8, 2024

Former Ohtani Interpreter Pleading Guilty to Bank Fraud, False Tax Return

Ippei Mizuhara faces up to 33 years in federal prison for his crimes.
May 7, 2024

Commissioners Grapple with Power Limits Amid Sports Betting Boom

The NBA’s Adam Silver acknowledges ‘we only have so much control.’