Joystiq reported recently that used Xbox 360 were rumored to be vulnerable to a hack capable of copying the original owners credit card information from the console; a fairly large allegation after SONY’s credit card fiasco as well as Microsoft’s own FIFA incident recently.
General Manager of Microsoft Security, Jim Alkove, responded with, “We are conducting a thorough investigation into the researchers' claims. 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.
Xbox is not designed to store credit card data locally on the console, and as such seems unlikely credit card data was recovered by the method described. Additionally, 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.”
In short Microsoft isn’t taking this lightly but assures its users that their credit card information is not stored on the 360 itself.
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