Following an increasing occurrence of Xbox Live account hack reports, we are growing concerned over Microsoft's Windows Live ID system, the only layer of protection between a hacker gaining access to a person's Xbox Live account and their information. In our research, the only consistency we saw across users who were hacked was the general inconsistency of what email and payment method was used on their account. Hotmail, Gmail and school emails were used for their Windows Live ID, while payment methods used were credit cards and PayPal. Other than a compromised Windows Live ID, there wasn't a common thread we could identify. ...
See the whole article here, courtesy of Joystiq.
Kicking Back Comments: In my "day job" I am responsible (in part) for investigations like this. IMHO Microsoft needs to take this a little more seriously or they could find themselves in a world of hurt if a large number of people are stolen from.
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