Microsoft Xbox 360 Live Hacked For $1.2M In Digital Merchandise.

A recent exploit in the Microsoft Corporation (Public, NASDAQ:MSFT) Points system has allowed hackers to scam their way into $1.2M worth of Microsoft Points. Hackers found an algorithm to generate fake Xbox Live Marketplace redemption codes for free Points. While imperfect, it worked more often than not.

According to Save and Quit, the program would grant users 160 MSP. While not much, using it could generate over a hundred dollars worth of MSP. One pirate said that they were able to get $150 worth of points in a matter of 20 minutes.

Microsoft discovered the exploit and patched it, but not before pirates got away with $1.2M worth of merchandise.Those hackers who used an exploit to gain ill-gotten Microsoft Points may find themselves in trouble. The Points that haven’t been used yet will be rendered illegitimate while those who already used the codes could be punished.

Microsoft informed Kotaku that the company has “taken steps to invalidate the codes obtained illegitimately,” so unused codes will no longer work.

Using illegal codes may result in harsher consequences:

“We take safety and security very seriously and require that Xbox Live members use the service in compliance with applicable laws and specifically prohibit people from engaging in illegal activity as a part of our Terms of Use and Code of Conduct,. Our Policy and Enforcement team is evaluating whether or not certain individuals have violated the Terms of Use for Xbox Live and will take the appropriate enforcement on an individual basis.”

Microsoft hasn’t announced when or how these punishments will come down, only that they’re coming down. We can imagine it’ll involve Ye Olde Banhammer.

Jonah Falcon is a blogger for TMRzoo and and covers all gaming consoles and platforms including Sony Playstation 3, Microsoft XBOX 360, Nintendo Wii, Sony PSP and computer games designed for Mac OS, Microsoft Windows and Linux operating systems. Jonah provides his readers with reviews, previews and up to date gaming industry news and rumors.

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