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If you’re like myself and millions of other legitimate users of Microsoft’s Xbox Live service, when you need Microsoft Points to purchase some new downloadable content you do the normal thing.

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You buy them. With your own money. On your console or from a store.

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Unfortunately for Microsoft however a small group of hackers have recently cracked the algorithm used to generate those familiar 25 character codes in order to obtain literally millions of dollars worth of space bucks in a less than legal fashion. A website devoted to hacking, modding, cheating and other irritating things most of us loathe threw up a generator which allowed the creation of codes worth 160MS Points ($2.00) each based on previously redeemed ones. Over 1.2 million dollars worth of codes were generated and redeemed over the course of a few hours before Microsoft caught on and dropped the hammer.

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It’s unknown at this point what response Microsoft will take, or if they have the ability to track down these fraudulent code users, but if they can pinpoint the illegitimate codes I imagine that harsh punishments will be dealt similar to what happened in the past to users who took advantage of an Xbox Live Marketplace exploit involving FIFA 2010.

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It makes me wonder though why Microsoft allows websites like this to exist though, unlike Sony who fiercely fights to keep their console secure with court orders, lawsuits, subpoenas and constant firmware updates. We’ll try to keep you all updated once we hear what Microsoft’s plans are to tackle this issue.

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Would appreciate if someone could fix the picture for me. Thanks.

That's ridiculous. Websites like that need to be shut down.

You're not kidding Siren. I have a personal grudge against this website in particular. The WHOLE THING is devoted to hacking/modding/JTAGing/Cheating/Glitching/Etc. It's horrible. It makes me angry the lengths that Sony goes to to keep their console secure and watch Microsoft be so complacent.

Makes you wonder how sites like that stay away from legal issues.

No clue. I can't find anything on their website dealing with legal issues and how they're not responsible/exempt from prosecution for the use/download of their services

MS Doesn't care though. They're too busy figuring out what new tshirts and clothes to sell to everyone for their Avatards.

*EDIT*

This makes me realize why MS is currently working on a new console. They KNOW their console's security is beyond broke and there is no way to save it. The only way to fight it know is basically a whole new architecture or something.

Nintendo will most likely be announcing a new console at E3. I think it's around that time that all three will begin discussing new consoles.

Also, Microsoft is saying the stolen amount was no where near 1 million. "Early reports stated that the code exploit cost Microsoft over $1 million, but the company refutes that number. "We can't share specific numbers, but the figure is nowhere near the amount that has been reported." "

Well I doubt that MS will ever release the total amount that was stolen using the exploit.

I also updated my article quickly to include "rumor" around the amount and that MS was disputing the reported sum.

That's crazy but I'm really not surprised that they managed to do it, and most people really aren't that bright. I'd bet Microsoft will be keeping a close eye on a large number of gamers who just so happen to be redeeming 160MS points one right after the other.

I just hope that they PERMABAN every single one of the ******** like they did with the FIFA marketplace glitch.

Also, that website needs to be taken down. They have like 250k registered "users"

One of the worst things is a lot of the actual hacks are done by people that or more or less bored and want a challenge. Most probably can and do afford most of the games etc. They just also need that recognition and thus release them. And then they get eaten up by every ignorant asshat around.

I just hope that they PERMABAN every single one of the ******** like they did with the FIFA marketplace glitch.

Do you have a link to where they said they banned them all? I want to read it over and over with this face on: ^____________^