An Xbox LIVE user has managed to track down a website selling Microsoft Points illegally.
By following the trail left by hackers, the user was able track down the website responsible for attacking her account twice.
Despite Microsoft's promise that her account was locked, she was able to log back into her original profile; even though it had been severely compromised they failed to shut it down. As far as we know, Microsoft has still not locked it.
The story came from a blog on Tumblr and was tracked down by Edge. The report explains how hackers: "use stored credit card data to buy an Xbox Live Family Pack, which allows for several accounts to be linked between which Microsoft Points balances can be transferred."
"Then large amounts of Microsoft Points are purchased and transferred to the thief's normal account; the thief then creates several free Xbox Live accounts, divides the stolen points between them, and sells them on individually."
This sheds some light on how these illegal sites make money out of selling Microsoft Points. Microsoft have some serious challenges to overcome if they are to stop this from continuing to happen. Though perhaps it was most concerning that it was a vigilant customer, rather than Microsoft, that uncovered these websites.
It remains to be seen just what will be done to tackle this ongoing problem with Xbox LIVE security.