Oh oh ... looks like Sony are up to their old tricks again.

F-Secure : News from the Lab

This USB stick with rootkit-like behavior is closely related to the Sony BMG case. First of all, it is another case where rootkit-like cloaking is ill advisedly used in commercial software. Also, the USB sticks we ordered are products of the same company — Sony Corporation.

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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.