Microsoft has released a statement that categorically denies security of the Xbox Live Arcade platform has been compromised - though it did admit that customer support could be improved.
"In recent cases, some Xbox LIVE members appear to have been victims of malicious scams. Unfortunately this is something that affects many Internet based services," reads the statement given to Spong, that claims phishing as the only real problem. "The online safety of Xbox LIVE members remains of the utmost importance, which is why we consistently take measures to protect Xbox LIVE against ever-changing threats."
There have been some stories of accounts being taken over and sold online - with the idea being that those behind the hack get their hands on extra Microsoft points.
"We are aware that a handful of customers have experienced problems getting their accounts restored once they've reported an issue. We are working directly with those customers to restore their accounts as soon as possible and are reviewing our processes to ensure a positive customer support experience."
As part of the statement, the search giant also commented on a specific instance that has drawn a lot of attention. Susan Taylor lost some $300 worth of purchases from her Xbox account - supposedly after Microsoft had already suspended it.
"While we do not ordinarily comment on specific cases, Microsoft can confirm that the account in question has been reinstated to its rightful owner and all unauthorized charges are being refunded in full."