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Microsoft have denied a claim that Xbox Live has been hacked.

The Sun newspaper in the UK reported that hackers “hacked into thousands of Xbox Live accounts to steal millions of pounds”  this morning; but Microsoft have denied that the Live network had been compromised and had said that gamers who money stolen from their accounts were victims of phishing scams.

Microsoft had also said that members had been hit with an increased volume of scams to gain login credentials. These have been ongoing for a number of years; but the number has seen a significant jump in the last few weeks.

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