DraftKings Website Hack, $635K Theft Leads to Two More Arrests

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Posted on: January 30, 2024, 08:47h. 

Last updated on: January 30, 2024, 11:13h.

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Two further men were arrested connected Monday for hacking DraftKings accounts and past stealing astir $635K from customers, according to national prosecutors and property reports.

Manhattan U.S. Attorney Damian WilliamsManhattan US Attorney Damian Williams, pictured above. The national charismatic announced nan arrests of 2 suspects successful a hacking scheme. (Image: Wall Street Journal)

In total, immoderate 60K accounts were successfully compromised connected nan sports betting tract successful 2022. Funds were taken from astir 1,600 accounts.

By utilizing a strategy known arsenic a “credential stuffing attack,” nan hackers sewage entree to nan tract aft employing a ample database of credentials stolen from earlier information breaches.

Credential Stuffing Explained

Federal prosecutors explained that a credential stuffing onslaught is erstwhile personification “collects stolen credentials, aliases username and password pairs, obtained from different large-scale data breaches of different companies, which tin beryllium purchased connected nan acheronian web.”

The threat character past systematically attempts to usage those stolen credentials to get unauthorized entree to accounts held by nan aforesaid personification pinch different companies and providers, successful bid to discuss accounts wherever nan personification has maintained nan aforesaid password,” nan feds added.

One of nan arrested suspects is Nathan Austad, 19, of Farmington, Minn., whose online othername is “Snoopy,” (from nan Peanuts cartoon). He was arrested successful Minnesota.

Also arrested was Kamerin Stokes, 21, of Memphis, Tenn., who has nan othername of “TheMFNPlug.”

A criminal title explained that forbidden entree to nan victims’ accounts was sold connected websites called “shops.” Austad’s shop was named aft “Snoopy,” nan canine characteristic from nan Peanuts comic strip.

The suspects look to person realized they could beryllium taxable to investigation. In May 2023, Austad sent retired a connection saying, “everyone knows their [sic] committing fraud.”

In December 2022, an unnamed co-conspirator successful nan crippled texted, “lol fbi can’t do s**t.”

Numerous Charges

Both suspects appeared successful national tribunal connected Monday. If convicted, they could look decades successful prison.

They are each charged pinch conspiracy to perpetrate machine intrusions, unauthorized entree to a protected machine to further intended fraud, unauthorized entree to a protected computer, ligament fraud conspiracy, ligament fraud, and aggravated personality theft.

In addition, Austad allegedly had accounts containing astir $465K worthy of cryptocurrency, authorities said. It appeared nan amounts placed successful nan accounts were from nan credential stuffing attacks and proceeds from nan waste of stolen accounts.

Prior Defendant to Be Sentenced

In November, a 3rd defendant, Joseph Garrison, 19, of Madison, Wis., pled blameworthy successful Manhattan national tribunal to conspiracy to perpetrate machine intrusion.  On Thursday, he’s scheduled to beryllium sentenced by U.S. District Judge Lewis A. Kaplan. Garrison faces up to 5 years successful prison.

He erstwhile told 1 of his conspirators successful an online connection that “fraud is fun,” prosecutors said.

But national officials are taking nan lawsuit seriously.

“Our agency is relentless successful search down nan perpetrators of cybercrime,” Manhattan U.S. Attorney Damian Williams said successful a connection announcing nan 2 caller arrests.

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