DraftKings stock falls after report cites cases of unauthorized account withdrawals, but company says it wasn’t breached

Shares of DraftKings Inc. were off 8% in afternoon trading Monday after an Action Network report highlighted customer stories of weekend instances in which they said money left their accounts without their permission. In one reported instance, a customer saw a series of unauthorized withdrawals from the bank card that he uses for his deposits, while in another, a customer saw a withdrawal from his DraftKings account that he didn’t authorize. The Action Network report mentioned that in multiple cases, users noticed that their account phone numbers had been changed. Paul Liberman, DraftKings’ president of global technology and product, said that the company was “aware that some customers are experiencing irregular activity with their accounts” but that the company has seen no evidence that it was breached to gain customer login credentials. “We currently believe that the login information of these customers was compromised on other websites and then used to access their DraftKings accounts where they used the same login information,” Liberman said in a statement. DraftKings has identified less than $300,000 of customer funds affected and plans to “make whole any customer that was impacted.”

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