Turns out, Mr. Nelson’s previous statement that “no one’s account was hacked, but there was some ‘suspicious’ activity on some accounts” is still true. However, a security researcher named Kevin Finisterre showed Microsoft how wrong they were about no one’s account was hacked. Kevin found that several Live accounts were hacked/stolen from users? How? Someone took advantage of Xbox Live users by pretexting to Microsoft Support as users who got their accounts “stolen” (which we assume that it is regarding the previous scare about Live accounts). The scammers were able to get Addresses, Credit Cards, Xbox Live Account logins as well as other stuff, by claiming they were helpless and hopeless users.
The real problem is that Microsoft Support actually gave this info out over the phone. The scammers threatened to take down anyone’s account and then steal any data from the said account. According to Microsoft, the scammers actually work as a clan (called oinfamouso) that advertise they steal accounts from people on their website. They shout out online threats, and slurs to any user who claims they are playing with hackers (kind of like the mafia) on Halo 2.