Reportedly, hackers figured out a fairly easy method to obtain free Microsoft Points, which supposedly cost Microsoft up to $1.2 million. Generally, as any soul without a dime to his or her name but really wants some DLC is aware, there are various sites that offer free MS Points after one fills out various surveys (their legitimacy usually in question), but this method discovered by hackers actually worked: They found an algorithm to add to used MS Points codes which would generate fresh codes that users could exchange for MS Points. Supposedly, not every single generated code would work, but a majority of them did, which resulted in people continually generating and amassing new, 160MSP codes.
Along with the site that offered the generated codes, a program was released–via the general piracy community–that would generate and obtain the codes for users, which offered the choice between 160MSP codes, or a code for a Halo: Reach Banshee avatar prop or a 48 hour Xbox Live trial.
Microsoft quickly discovered and subsequently squashed the exploit, though one user of the exploit claimed he managed to steal about $150 in MS Points in 20 minutes of attempts. For more details on the exploit, head on over to The Tech Game forums, which is where the exploit originated.
A Microsoft representative responded to the situation, claiming that the exploit resulted in much less stolen money than the reported $1.2 million figure, and gave a pretty uninteresting response regarding how they will handle punishing the guilty parties:
At least Microsoft claims they will accurately evaluate and punish the appropriate parties, rather than the way certain other ridiculously popular teams handle money hacks.
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