14 DAY TRIAL // Microsoft has filed a lawsuit against a number of parties, including a Chinese company that allegedly hacked Xbox accounts since 2015 and sold in-game credits for a large variety of games.
As revealed in lawsuit documents published by The Verge, Chinese website iGSKY was selling virtual game currency using hacked accounts and their associated credit cards for very popular titles like FIFA, Grand Theft Auto V, Pokemon GO, CSGO, and Madden NFL 17.
A thorough analysis that the company’s own team of investigators started discovered that the website was in control of an unknown number of Xbox accounts, which helped them make an estimated $2 million in purchases of virtual game currency.
Charges of fraud and racketeering
Microsoft explains that, in December last year, investigators attempted to purchase game currency from the website to determine whether their activity was illegal or not. A total of 11,000 FIFA points were purchased for $60, with Xbox Live receiving an email and password change request for an 8-year-old account.
This made the company believe the website was in control of the account and attempted to block the owner from accessing it until the associated card was used to pay for the virtual game currency. The account was then charged 11,000 FIFA points worth $127.54, with Microsoft then contacted by the original owner of the account to reset the password for what he described as a compromised account.
It’s not exactly known how the website gained access to those Xbox accounts, but Microsoft says that it registered tens of thousands of attempts.
“Despite these efforts [to block access], because defendants unlawfully obtained account credentials previously compromised outside of Microsoft’s systems and use those credentials to gain access to the MSAs, defendants were able to complete nearly $2 million in fraudulent purchases of virtual gaming currencies. Microsoft has issued customer refunds of has received chargebacks from the credit card issuing banks for all these unauthorized and fraudulent purchases,” the documents show.
Microsoft filed charges of fraud, CFAA violations, and racketeering conspiracy under RICO against Gameest (the parent company) and owner Weiwei Chu.
UPDATE: Microsoft has provided us with the following statement on the on-going legal dispute against the Chinese site:
“Microsoft is committed to providing customers with safe and secure online experiences. We filed these lawsuits to protect our Xbox customers from the illegal trafficking of stolen property.”