Attackers send mail to Xbox Live Customers with Phishing page that claims "offering free Microsoft points that can be used to buy games." The gamers entered the personal info without knowing that it was phishing page. These criminals take small amounts from credit cards over several weeks so that victims can not detect theft. Other victims lost money when passwords were accessed.
The victims only realised when their online profile became "locked out" , meaning someone else had used it.
Microsoft confirmed there had been no breach in the security of Xbox Live itself. Microsoft is investigating and says a small percentage of users are affected. Microsoft spokesman said:
"We take the security of the Xbox Live service seriously and work to improve it against evolving threats.
Very occasionally, though, we are contacted by members regarding alleged unauthorized access to their accounts by outside individuals.
We work closely with impacted members directly to resolve any unauthorized changes to their accounts and, as always, highly recommend all Xbox Live users follow our account security guidance in order to protect their account details."
