Microsoft declares Xbox Live security was not breached

Microsoft Corp. on Wednesday has denied reports that the hackers have penetrated its Bungie.net or its Xbox Live online video game network, claiming that after investigating possible fraud on its Xbox Live service it has found no evidence of the security breach.

After reports of fraudulent activity and account theft taking place on the Xbox Live network, which has more than 6 million subscribers, the software giant swiftly looked into the matter and launched the investigation.

Members registered with the service play online with each other and also shop from the network using their credit card.

After probing alleged instances of Xbox Live account hacks and hijacks, Microsoft has moved to reassure Xbox Live users that accounts have not been hacked or used for fraudulent activity.

“We want to reassure all of our 6 million Xbox Live members that we have looked into the situation and found no evidence of any compromise of the security of Bungie.net or our Live network,” the Redmond giant said in a statement.

"There have been a few isolated incidents where malicious users have been attempting to draw personal information from unsuspecting users and use it to gain access to their Live account," it added.

Complaints of account theft on Xbox Live emerged this week when gamers reported that their Xbox Live accounts were hijacked and their credit cards were used to buy "Microsoft Points," the virtual currency on Xbox Live.

Numerous Xbox 360 users complained that their GamerTags had been used by other players, resulting in users being frozen out of Xbox Live accounts. Gamertag is Xbox Live's term for a ganer's username.

Kevin Finisterre, a security researcher and "Month of Apple Bugs" fame, first publicized the reports of hijacked accounts, announcing that he had been hacked.

Before this, on February 11, 2007 an Xbox Live user posted a message on a Microsoft Xbox forum complaining about a hacked account and stolen credit card information.

Microsoft, maker of the Xbox 360 video game console and the popular "Halo" game franchise, said that security has been a major concern for the company, whose operating system is a frequent target for hackers.

There seems to be several groups of Xbox Live players who straightforwardly expose the stealing account information. A group of hackers who go by "Infamous" boast of stealing ten Xbox Live identities each day.

"We think this is a good time to remind our members that they should never give out any of their personal information," Microsoft said. "This information could be used by other players for illegal or harmful purposes. Also, don't give out the personal information of other players," the company added.

Xbox users should not reveal information that personally identifies them, such as their real name, address, phone number and especially the credit card number in order to protect their account, Microsoft said.