Microsoft has taken steps to identify users who used an exploit to duplicate Xbox Live points codes and illegally download content with them.
Yesterday it was reported that some Xbox 360 owners had used the technique to stockpile points for free instead of paying for them legitimately.
Microsoft has said it is now tracking down the scammers after invalidating the duplicate codes and will take “appropriate enforcement” upon them.
“We are aware of the situation and have taken steps to invalidate the codes obtained illegitimately,” read a Microsoft statement sent to Gamasutra.
Microsoft also said that the reported $1.2m amount it had lost over the scam was false.
“We can’t share specific numbers, but the figure is nowhere near the amount that has been reported,” the statement added.