This past Friday my xbox live account was hacked for the first time. I had this account since the original xbox days and i am completely shocked that this happened. I figured something was wrong when i notice i couldnt sign into my account saturday morning. A message kept popping up saying i need to recover my account. So i tried, to no avail. For some reason, something I do so routinely such as entering my windows live information was not working. From there i knew something was definitely wrong. I checked my bank account and notice 2 purchases for 6000 and 4000 microsoft points were made. I immediately called microsoft. What i've learned is that there is apparently a hack going on and I just became a victim. The hacker some how manage to get a hold of my windows live account information, recover my gamertag on his xbox, and buy 10000 microsoft points! That's an equivalent of of $140!! He even changed the windows live id to something else, thats why i wasnt able to sign in. Through the helpful use of the windows live security email i received, I found out what the hacker changed my windows live id to and manage to change the password to something Extremely more difficult. Right now my account is suspended for 2-4 weeks for investigation and i need to tell my bank the situation with the 2 pending transactions. If there is truly a hack going on in Xbox Live, I highly advice all of you to change your windows live passwords to something more difficult. You do not want this to happen to you! Im a currently unemployed student and i could have really used that $140... *sadface*
There isn't a 'hack going on on Live.' That would mean a breach of microsoft's servers, stolen data, and the decryption of said data. It's simply not feasible. Truth is that you probably logged on to xbox.com while on a computer that has either a keylogger or a virus on it. My advice: don't let ANY program remember your passwords. A month or two back I was sent a document that had lists of steam account info on it and that was from a simple virus that read the encrypted password info saved from browsers/autofill programs.