Microsoft Denies Claims of Credit Card Data Theft from Xbox

It seems research conducted yesterday claiming to recover credit card data from old formatted Xbox consoles may be misleading. Microsoft tags the results as "highly unlikely" and has started a thorough investigation into the matter.

A group of researchers from Drexel University has unveiled that even after a factory reset or other wiping methods used by authorised Microsoft resellers, refurbished Xbox consoles may be hacked for credit card information. Ashley Podhradsky, a member of the team, only used simple modding tools to obtain these details.

Microsoft became aware of the predicament and based on Jim Alkove's statement, the general manager of Microsoft's security of interactive entertainment business, the company has started a detailed investigation: "We have requested information that will allow us to investigate the console in question and have still not received the information needed to replicate the researchers' claims."

Alkove says that Xbox consoles are not meant to store credit card data on the local hard drive, but on the cloud or on Microsoft official servers, hinting at a possible fabrication of results just for media attraction.

This problem would also have a social side, with users having to worry about sensitive information left behind when reselling consoles, but Microsoft's spokesman assures clients with the fact that "when Microsoft refurbishes used consoles we have processes in place to wipe the local hard drives of any other user data. We can assure Xbox owners we take the privacy and security of their personal data very seriously."

Source: Joystiq