IGN
UPDATE: Microsoft has addressed concerns surrounding an alleged Xbox.com hacking trick as reported here at IGN. The official line is as follows:
"Microsoft can confirm that there has been no breach to the security of our Xbox Live service. 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. Security in the technology industry is an ongoing process, and with each new form of technology designed to deter attacks, the attackers try to find new ways to subvert it. We continue to evolve our security features and processes to ensure Xbox LIVE customers information is secure. Online fraud and identity theft are industry-wide problems, and as such people using any online services should set strong passwords, not share those passwords across multiple services and refrain from sharing any personal details that could leave them vulnerable. As always, we highly recommend our members follow the Xbox LIVE Account Security guidance provided athttp://xbox.com/securityto protect your account."
Microsoft also specifically states, "This is not a 'loophole' in Xbox.com. The hacking technique outlined is an example of brute force attacks and is an industry-wide issue." In addition, it reiterated that account compromises are often a result of phishing scams and malware used to snatch your password.
http://ie.xboxlive.ign.com/articles/121/1216502p1.html
