Daily Fantasy Sports Face Security Issues from Hackers and Insider Trading Scandals

Casino Watch Focus has reported on the ongoing saga of America’s newest form of gambling, Daily Fantasy Sports (DFS). Many people participate when they see advertisements for DraftKings or FanDuel without realizing it could be an illegal form of gambling. Others may know, but assume the risk is low and play because it seems so prevalent. Few, however, consider the risks beyond its legality and assume it’s a safe environment to pay and collect money. Unfortunately, that is hardly the case. Casino Watch Focus has already reported on one insider type trading incident as a DraftKings employee wont $350K at its rival FanDuel’s site. As on employee of one site, they have access to betting trends and outcomes and can use the information unfairly when “competing” against others. Now, its appears another type case has manifested itself. Deadspin explains the details:

Stefon Diggs had a fantastic game last night , torching the Green Bay Packers and helping his team win in the first game at their new stadium. His nine catches and 182 yards with a touchdown also played a key role in securing Al Zeidenfeld first place in DraftKings’ biggest contest of the weekend, the NFL $5M Fantasy Football Millionaire. That’s a $1 million prize, even before his other Week 2 entries.

Zeidenfeld is also a regular DFS contributor to ESPN and, in his words, a “sponsored professional Daily Fantasy Sports player at DraftKings.com. On air personality and content provider for DraftKingsTV and Brand Ambassador/endorser.” It’s at least curious that the winner of DraftKings’ flagship contest is someone paid to give advice to his ostensible competitors, but a Draftkings contractor raking in a big prize is an unwelcome callback to last year’s controversies.

But even if such cases don’t seem like the norm and something players consider when playing these games, then surely the protection of their personal and financial information should be? Cybersecurity experts are warning of the large target such DFS communities pose. And the threat isn’t limited to hackers stealing financial information outright either, there are legitimate concerns or them manipulating the data used to determine winners as well. An online tech source explains:

A growing chorus of cybersecurity experts is warning that fantasy sports websites represent a prime target for hackers. The volume and sensitivity of data on these sites is significant. And many have failed to put expansive data protection measures into place.

The daily fantasy industry netted $290.7 million in revenue just in the US in 2015. DraftKings accounted for $174 million of that revenue and FanDuel for $106 million. It is predicted that growing competition in the market will push the total revenue for daily fantasy sports into the billions in the near future.

In addition to the money itself, these sites store the personal and financial data of million of users. These sites may not rank in the Top 10 of consumer-facing websites, but their appeal as targets for hackers is significant.

Theft is not the only concern. Experts have also warned that hackers could manipulate the data used to determine winners and losers to award legitimate prizes to fraudulent users. The explosion in traffic these sites face on the Sunday morning before most football games also puts them at risk of denial-of-service and zero day attacks.

For more information on the dangers of gambling, please visit CASINO WATCH & CASINO WATCH FOUNDATION

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