Xbox Live users fall victim to email phishing scam

A number of people using Microsoft's Xbox Live gaming service have fallen victim to a targetted phishing scam that has stolen account details.

However reports that the Xbox Live servers have been hacked are incorrect according to Microsoft which said it could "confirm that there has been no breach to the security of our Xbox LIVE service."

The first reports of the phishing scam started to appear in mid October and affected Xbox Live users began complaining that money had been taken from their bank accounts to buy online content through Xbox Live.

It is believed that the stolen accounts are being used to purchase items on FIFA Ultimate Team, an add-on for the FIFA 12 game.

Microsoft has said that it is "working closely" with members of its Xbox Live service and it would be investigating unauthorised changes to accounts. However the company warned people about the dangers of clicking on links in unsolicited emails, especially if they are asked to hand over account details.

Tim Smith, editorial director of gaming website Spong, explained that the email scam could only work if people offered their details voluntarily:

"People received emails directing them to websites set up entirely to capture their details. People followed the directions and entered their details voluntarily.

"In another case criminals 'guessed' passwords and used these to access Xbox Live accounts. Basically people handed over the 'keys' to their own digital front doors."

Mr Smith added that the scam could only be used to purchase things within Xbox Live as credit card details weren't visible in the account.

Microsoft said that Xbox Live customers who have any queries or concerns can contact Xbox Live customer service on 0800 587 1102 or visit www.xbox.com/security.