After some gamers took advantage of an exploit that automatically produced codes for Microsoft Points — e-currency that’s used on Xbox Live purchases — Microsoft invalidated the points and may punish those who took advantage.

Microsoft gave this official statement to Kotaku:

“We are aware of the situation and have taken steps to invalidate the codes obtained illegitimately. … We take safety and security very seriously and require that Xbox LIVE members use the service in compliance with applicable laws and specifically prohibit people from engaging in illegal activity as a part of our Terms of Use and Code of Conduct. Our Policy and Enforcement team is evaluating whether or not certain individuals have violated the Terms of Use for Xbox LIVE and will take the appropriate enforcement on an individual basis.”

Reports from gaming blogs estimated Microsoft lost $1.2 million in allegedly stolen points, but Microsoft told Kotaku actual losses were “nowhere near” that figure.

Microsoft Invalidates Stolen Point Codes, Considers Punishment For Exploiters [Kotaku]

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