Xbox Live is reportedly a hotbed for fraudsters who are now selling hacked gaming profiles loaded with Microsoft Points. SC Magazine are reporting on dozens of these sites auctioning Microsoft Points for a fraction of the cost charged by Xbox Live.
SC Magazine report that numerous victims, mostly from the US and UK, have come forward to report that the fraud begins when Xbox Live profiles are hacked or phished. Microsoft reportedly also state that the service not aware of vulnerabilities in Xbox Live.
After these profiles have been hacked they are loaded with Microsoft Points purchased using credit card and PayPal details that stored with the profiles. Hackers then purchase Family Packs that open new Xbox Live accounts linked to the hacked profile.
Lastly, the Microsoft Points are then transferred to the new accounts and sold for bargain prices online.
