Microsoft denies Xbox Live security breach

GAMES CONSOLE MAKER Microsoft has denied that its Xbox Live internet gaming service has been breached by hackers.

The statement comes following news that members of the service have been the victims of various scams. One user's account in particular was targeted to create new accounts with Microsoft points to be sold on the black market.

Microsoft said it "can confirm that there has been no breach to the security of our Xbox Live service". It added, "In recent cases, some Xbox Live members appear to have been victims of malicious scams. Unfortunately this is something that affects many Internet based services."

One user, Susan Taylor took to Tumblr to tell her lengthy story. It involves her Xbox Live account and linked Paypal account having been used to purchase Microsoft points and then transfer them to a dummy account to be sold for profit. A total of over $350 of Taylor's money was spent by the hacker. She does not know how the hacker gained access to her account.

Microsoft reportedly failed to lock her account to prevent further trouble. In her post, she shows a series of messages from a user with the same account name as hers detailing how they purchased it from a dodgy web site. Taylor has since been refunded the money taken from her account.

The problem seems to be on-going, with thousands of users having fallen prey to phishing attacks last November.

Microsoft's statement goes on to read, "The online safety of Xbox LIVE members remains of the utmost importance, which is why we consistently take measures to protect Xbox LIVE against ever-changing threats.

"However, we are aware that a handful of customers have experienced problems getting their accounts restored once they've reported an issue. We are working directly with those customers to restore their accounts as soon as possible and are reviewing our processes to ensure a positive customer support experience." µ