Xbox Live Security Update

Major Nelson has given us an update as to what really happened. It seems that someone coaxed some information out of Microsoft's support personnel. The terms for it used by Major Nelson are, Social Engineering, and pre-texting. Its a form of having some information on a given account, and then convincing the support staff member, of their legitimacy. So live wasn't hacked, just a few support staff members not doing their job's right.

Here's some more info i found on some of the guys believed to be involved in trying to steal accounts

As posted on the clan’s (now inactive) website: "How do we get your information? Its easy...you call [and] pretend to be that person make up a story about how your little brother put in the information on the account and it was all fake, blah blah blah you might get one little piece of information per call but then you keep calling and keep calling everytime getting a little more information. once you have enough information you can get the password on the windows live ID Reset. they may tell you they cant but its bull s***. people at Bungie CAN and WILL reset your password."

The website also boasted that the clan “steals at least 10 accounts a day,” threatening, “If you talk s*** we will mod on your account until it is banned.

One case involved computer security expert Kevin Finisterre, whose girlfriend’s Live account was taken over after he received threats from other players during a Halo 2 session under her Gamertag. The online thugs reportedly didn’t appreciate Finisterre calling them out on their obvious in-game hacks.

A frustrated Finisterre called Xbox Live support, which essentially said that it had no power to correct the situation. Finisterre recorded the conversation: http://www.digitalmunition.com/xbox-live-remix.m4a.

News-Source:http://www.majornelson.com
Additional Info: http://www.next-gen.biz