Microsoft is having to clarify information that was posted today in a story from the well known UK tabloid newspaper The Sun. The newspaper and its web site claimed that, " ... online crooks have hacked into thousands of Xbox Live accounts to steal millions of pounds." It is only in the body of the story where The Sun states that the Xbox Live accounts were in fact victims of "phishing" scams.
In a post on Microsofts Xbox UK Facebook page, a message states: "Xbox LIVE has not been hacked. Microsoft can confirm that there has been no breach to the security of our Xbox LIVE service. In this case, a number of Xbox LIVE members appear to have recently been victim of malicious ‘phishing’ scams (ie. online attempts to acquire personal information such as passwords, user names and credit card details by purporting to be a legitimate company or person)."
The Facebook post adds, "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."
While "phishing" scams are certainly a huge issue for Xbox Live account holders, Microsoft has little power to go after such operations since they dont actually attack the Xbox Live system.