Despite a growing number of complaints about accounts being compromised Microsoft has
insisted to Edge Magazine that the service has not been breached by hackers. Our own Dan Keener had his account
compromised last year and it looks like more and more people have had their account compromised.
It turns out that a lot of these compromised accounts are
being sold on ebay like sites, thus doubling the victims of the scams (although if you are buying Xbox Live accounts off the internet you probably deserve what you get).
Personally I still think that a lot of these hacked accounts are people who have shared accounts/passwords in a few places and have had their passwords compromised by poor security somewhere else but if this trend continues the onus is going to be on Microsoft to prove that their system is safe.