Firm refutes The Sun's allegation that Xbox Live has been hacked.

Microsoft says Xbox Live ‘not hacked’

Microsoft has denied that the Xbox Live service has been hacked following reports of thousands of accounts of Xbox Live customers being duped by an online scam.

Criminals sent emails to Xbox Live account holders redirecting them to websites offering free Microsoft points which could be used to download games. Those who entered their credit card details were hit by charges averaging £100, The Sun said, although some were stung for more than £200.

The paper also claimed that criminals had hacked Xbox Live accounts but Microsoft moved swiftly to clarify: "Xbox Live has not been hacked. Microsoft can confirm that there has been no breach to the security of our Xbox Live service," the company said.

The firm instead said that Xbox Live members had been subject to malicious ‘phishing’ scams and that the company was working with affected account holders to look into changes made to their accounts following the scams.

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