Hackers have managed to scam Microsoft out of $1.2 million in virtual currency after they devised an algorithm which allowed them to generate new Microsoft Points codes from old ones.
The hack was hosted on a website which gave out 160 Microsoft Points for free - and for real - each time the user refreshed the page. The site was overwhelmed with users' traffic that it started to return the famous page not found error 404 to a lot of visitors.
An exe (executable program) version of the hack has also found its way to hacking and file sharing sites. One of the pirates who used the program reported that he managed to rack up $150 worth of Microsoft Points in 20 minutes.
Microsoft noted the exploit and stopped it but not before hackers managed to steal $1.2 million worth of Microsoft Points according to a source at the company. Microsoft didn't issue any statement regarding the matter yet, but it is unlikely that it would be possible for the company to sort out hacked codes from legitimate ones.