Microsoft's Xbox Live hit with possible data breach

Microsoft's Xbox Live hit with possible data breach

Microsoft's Xbox Live online gaming service is offering several holiday deals, but even low prices may not be enough to increase sales after a recent publicized security breach.

According to the Guardian, Microsoft denies its Xbox Live system has been hacked, but the company has agreed to reimburse users who have reported illegitimate charges on their credit card.

Despite Microsoft refraining from calling the incident a cyberattack, the unauthorized transactions are allegedly the result of a recent phishing scam, which gathered Xbox Live users' account information and credit card data, the report said.

"We take the security of the Xbox Live service seriously and work to improve it against evolving threats," a Microsoft spokesman said. "Very occasionally, though, we are contacted by members regarding alleged unauthorized access to their accounts by outside individuals."

Only a small portion of Xbox Live users were affected by the scam, and Microsoft will continue to investigate the matter, the source reported.

The incident comes just months after Sony's PlayStation Network online gaming platform experienced a massive data breach that exposed the names, addresses and other personal information of 77 million users.