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There was an article on ZDNet dated March 20, 2007 that outlined something pretty similar to this happening. A follow up article states that Microsoft denied the hack and said it was some "social engineering attack." Posts following both articles from people who say that they were hacked, and others saying it's not possible. Doing a Google search will get you the articles, but I'm not going to link to them because one of them outlines how to supposedly hack an XBox Live account.
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