Microsoft has gone on the record and admitted that phishing scams are occurring on Xbox Live. Well, technically they are admitting that phishers are trying to get Live account information while ignoring that there’s more on the line, like personal credit card numbers. Offering reimbursement to customers, they also wanted to make clear: This was not a failure of software technology. We want to reassure our customers that there has been no security breach of the Xbox Live network or of Bungie.net.

Isn’t a phishing scam occurring on a closed and thereby safe network precisely framed as a failure of their technology? There’s only so much any company can do to protect customers who are willing to re-enter personal info at the drop of a hat, but for all the sacrifices we make on the closed Live platform, it’s supposed to be an experience free from the everyday burdens of a PC.

Their full statement after the jump.