Yesterday, a forum user on website The Tech Game posted a way for people to scam free points for use on Xbox Live. By the time Microsoft found out and shut it down, over $1 million in codes had been "stolen".
User "Dark" is the author of the post explaining the exploit, which was able to generate authentic download codes for Microsoft Points on Xbox Live, essentially letting people get money for nothing.
A report on Save & Quit says that though it only took Microsoft a few hours to discover this exploit and put a stop to it, by the time this took place around $1.2 million in Microsoft Points had been hoisted by those fast enough to get in on the scam.
We've contacted Microsoft for confirmation of this, and will update if we hear back.