Two additional people charged in DraftKings cyberattack

Two people, Nathan Austad (age 19) from Farmington, Minnesota and Kamerin Stokes (age 21) from Memphis, Tennessee, were charged for their involvement in the DraftKings cyberattack in November 2022. It is believed that they used the stolen data for their own benefit by selling sensitive information and causing harm to the company and its customers. Joseph Garrison, another individual involved in the scheme, has already admitted guilt.

to the Court

The court was provided with significant evidence by the FBI.

Austad and Stokes, who were apprehended on January 29th, are accused of multiple crimes such as scheming to hack into computer systems, unauthorized entry into a computer, wire fraud, collusion in wire fraud, and aggravated identity theft. If found guilty, they could potentially be sentenced to a maximum of 20 years in prison. Their breach specifically targeted around 60,000 accounts on DraftKings and was accomplished by exploiting previous data breaches.

The perpetrators employed multiple strategies, such as setting up new payment methods, to take money from the victims’ accounts. They also traded access to the hacked accounts in large quantities through secretive online stores, some of which they managed themselves. According to reports, Stokes bought a significant number of accounts from Joseph Garrison, a third accomplice, totaling more than $125,000 in worth, and then sold them on his own virtual store.

Stokes promoted the hacked accounts on his online store using Instagram, aiding the FBI’s inquiry into the matter. Officials emphasized how Austad employed AI technology to produce images promoting his store’s stolen user accounts. He also oversaw cryptocurrency wallets that received around $465,000 from attacks using stolen credentials and the sale of compromised information.

Gambling companies must quickly adjust to these risks.

On May 18, 2023, Joseph Garrison, a key member of the hacking team, was charged for participating in the plot. Garrison had already turned himself in and admitted guilt in November, and is currently awaiting sentencing on February 1. It is estimated that Austad, Stokes, Garrison, and other accomplices have collectively taken around $600,000 from approximately 1,600 accounts.

DraftKings has returned all the money that was taken from customers, emphasizing the importance of safeguarding their personal and financial data. The company, which has been targeted by cyberattacks, has implemented significant measures to avoid future incidents. These attacks can result in more than just financial losses, as they can harm the company’s reputation.

The frequency of cyberattacks is on the rise, with a greater level of complexity, and affecting a wide range of industries. This poses a significant threat to economic stability.

James Smith, the Assistant Director in Charge of the FBI.

This situation brings attention to the continued dangers and difficulties faced by online platforms, particularly in the areas of gambling and fantasy sports. Attacks using stolen login credentials continue to pose a major threat, underscoring the importance of strong security measures and educating users to prevent unauthorized access to their accounts. It is hoped that other companies will learn from this incident and take proactive steps to protect their customers’ safety.