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Live users report account hijacking, Microsoft investigating

"Security is a top priority for Xbox Live, and we are actively investigating all reports of fraudulent behaviour and theft", says the company

Microsoft is investigating potential fraud on Xbox Live as Live users claim their accounts have been hijacked, it's emerged.

Reported on CNet News.com, Live subscribers have said their credit card details have been used to buy Microsoft Points.

"Recently, there have been reports of fraudulent activity and account theft taking place on the Xbox Live network. Security is a top priority for Xbox Live, and we are actively investigating all reports of fraudulent behaviour and theft," a Microsoft spokesperson told the news service.

It adds that other parties reckon the users may well have fallen victim to phishing scams or been "tricked into giving up enough information while in a game so fraudsters could call Microsoft to change the account information", rather than Live security being breached.

UPDATE: ZDnet is carrying additional details on the account hijacking. It's suspected that Bungie.net may have been hacked which has led to Xbox Live accounts being compromised.

Kevin Finisterre, a security researcher at Digital Munition, has painted a rather worrying picture. He says he contacted Microsoft Tech about this and they confirmed that "Hackers have control of Xbox live and there is nothing we can do about it".

We'll have more on this as it becomes available.

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