There are lots of ads for sites that supposedly generate real Xbox LIVE codes for points and other items for free, apparently one of them was actually real this week. Microsoft suffered a loss of $1.2 million dollars in Microsoft Points and other redeemable codes before they were able to close the site down. The rumor is that some hackers had figured out a way to create valid working redeemable codes by changing the number values of older used codes.
The site was apparently generating codes every time the page was refreshed, but it finally buckled under the extreme demand. The more hardcore hackers were apparently using a program that was able to generate codes for Microsoft Points, 48-hour Xbox Live Gold Trials, and Halo Reach add-ons, which we believe were Reach Avatar items.
Since this Microsoft have looked into it and they are looking to punish those who participated in obtaining the free codes. Microsoft has now invalidated the codes generated illegitimately and come out with the following statement:
“Codes obtained legitimately by users will not be impacted”. Microsoft found out about the generator within hours but a reported $1.2 million worth of codes were generated and used. Microsoft has said that the figures are far too high adding “We can’t share specific numbers”.
Microsoft’s full statement: