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Obligations
Federal prosecutors on Thursday announced criminal charges opposing an 18-year-old Wisconsin boy for a scheme to hack and sell the accounts of users of sports betting site DraftKings.
The man, Joseph Garrison, is accused of fleeing with others to borrow about $600,000 from the accounts of about 1,600 victims of the November 2022 attack, according to the U. S. Attorney’s Office in Manhattan.
DraftKings is not named in the burglars’ complaint against Garrison. But someone close to the company said it was the target of the so-called credential stuffing attack. DraftKings showed this later.
In a message to CNBC, DraftKings said, “The protection and security of our customers’ non-public and payment data is of paramount importance to DraftKings. We have worked with law enforcement to catch the alleged bad actors, and we need to thank the Department of Justice, joining the FBI and the United States Attorney for the Southern District of New York, for their swift and effective action. “
The company said it has reinstated the budget for the “limited number of users” who were affected by the breach.
Police searched Garrison’s Wisconsin home on Feb. 23 and recovered his computer and cellphone, according to the complaint.
On those devices, investigators discovered credential-stuffing programs, script images on how to use users’ stolen credentials to borrow money from victims’ accounts, and messages between Garrison and accomplices, according to the complaint.
The messages included those in which Garrison wrote: “Fraud is fun. . . I’m addicted to seeing cash in my account. . . I’m kind of obsessed with avoiding —,” according to a court filing.
The photographs cited in the FBI affidavit were hosted on Imgur, a file-sharing website.
CNBC also discovered the same photographs on a site that allegedly sells compromised accounts on DraftKings and FanDuel, among others.
ESPN has reported in the past that a cyberattack in November affected users of DraftKings and rival site FanDuel. FanDuel told CNBC it was not materially affected by the attack: “Our security has done its job. “
Garrison is charged with conspiracy to engage in computer intrusion, unauthorized access to a computer for purposes of intentional fraud, unauthorized access to a secure computer, conspiracy to commit wire fraud, wire fraud and nuisance identity theft.
He faces a maximum criminal sentence of 20 years if convicted, but will most likely get much less time under federal guidelines.
Chris Cylke, senior vice president of government relations for the American Gaming Association, an industry group, told CNBC, “The legal gambling industry is working hard to provide consumers with regulated access to gambling. “
“Today’s news reinforces the importance of law enforcement at all levels holding fraudsters and criminals accountable,” Cylke said.
– CNBC’s Rohan Goswami contributed to this report.
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