Microsoft Acknowledges Phishing on LIVE

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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.

Microsoft has confirmed reports of certain individuals taking over subscribers' Xbox LIVE accounts through fraudulent behavior.

We've taken action to help protect our subscribers' accounts and are working with our call centre staff to help reduce the likelihood of future incidents. This includes:

• Retraining all customer support representatives. • Examining the policies and processes for account recovery. • Continuing to monitor the situation closely to take appropriate action as necessary.

In addition to these steps, we continue to recommend that our customers always be careful with whom they share information while connected to Xbox Live.

We will reimburse any customer whose account has been compromised in this fashion. If they have lost content such as Xbox Live Arcade games, we will provide the customer with replacement content at no charge.

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.

Customers who have any concerns about their account should visit www.xbox.com/support, click on the link titled "Troubleshooting Access to your Xbox Live Account," and perform the steps outlined there."

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