Microsoft is warning of a hoax email which claims that the recipient has won an Xbox games console.

The email from US based company Prize-Giveaway.com says: 'Congratulations on winning, from Microsoft and the Prize-Giveaway.com team!' The lucky 'winners' are then directed to the company's website.

One of the firm's founders, John Macky, claims that the site was set up when he and his co-founder Jennifer Smith "agreed upon our mutual admiration for giving, even when we were not receiving".

"With that desire and help from our sponsors, we have given away many prizes together to VERY happy people, and we really enjoy the responses that we've received," the message on the website continued.

Winners are told that they have nothing to pay but shipping, postage and handling charges. They are asked for debit card details, as the website claims that it is unable to process credit cards.

Computeractive reader Simon Cook wondered why he was on the receiving end of such generosity, as he had never heard of the site nor knew anyone who would have put his name down.

"I was suspicious that I couldn't give them credit card details," he said.

Microsoft insists that it has nothing to do with the site. The company told vnunet.com: "The email your reader received is a hoax, and is not affiliated with Microsoft. Microsoft is aware of the issue and is currently looking into this."

vnunet.com could not find the address listed on the website through US directory enquiries. Neither the founders nor the registered owner of the website have returned emails requesting comment.