Reports are growing across the interweb that many Xbox Live accounts linked to the new Windows Live service may have been stolen by hackers, according to the Zero Day hacker-tracking blog.
The blog points to a report on the Full Disclosure mailing list released over the weekend, which reveals an incident of hacking at Bungie.net, during which some of Xbox Live was 'exposed'. The mailing list writer Kevin Finisterre states that "Some folks are having their Microsoft points stolen and or points purchased via their stolen gamer tag."
Apparently, most of the hacked accounts are linked with Windows Live IDs, and sites like Xbox.com and others contain a number of complaints from gamers who believe their accounts have been hijacked.
Finisterre highlights an online group called the Infamous Clan who offer to hijack Live accounts, boasting of their progress in relieving gamers of their gamertags. One gamer, writing to the Zero Day blog, claims that his ID was stolen and used to purchase 800 USD of MS products, and that he was struggling to resolve the situation with Microsoft who believed a security breach of this nature was impossible.
More over, other reports also suggest MS are struggling to resolve these incidents of identity fraud, though have now admitted that some accounts have been 'compromised'.