It seems that Microsoft have finally admitted that Xbox Live accounts are in fact being hacked then stolen, but apparently they feel neither willing nor able to take any action to resolve the issue.

According to a post on the Full Disclosure mailing list, Microsoft are aware of the problem, but state that "there is nothing [they] can do about it".

This is shocking news, although hardly surprising, given Microsoft's lax attitude towards security, and the appalling security performance of their other software, including the Windows Operating Systems.