Xbox Live is generally seen as pretty secure - at least more so than others. The service has never been taken down by hackers, but it has seen its fair share of account hacks.
Ars Technica reports that Xbox Live accounts belonging to former and current Microsoft employees have been hijacked by hackers. It's suspected that those responsible may belong to a group of hackers going by the name of Team Hype. The group reportedly has a history of obtaining Xbox Live accounts and selling them to other players.
To Microsoft's credit, the company confirmed the hijacking with Ars Techinca, and said it is working on a solution:
"We are aware that a group of attackers are using several stringed social engineering techniques to compromise the accounts of a handful of high-profile Xbox LIVE accounts held by current and former Microsoft employees. We are actively working with law enforcement and other affected companies to disable this current method of attack and prevent its further use."
Unfortunately, there may be more account hacks on the horizon as a Microsoft Entertainment Awards Facebook app accidentally revealed account information for nearly 3,000 Xbox Live members. No passwords or other critical information was leaked, but the information that was revealed could be enough to obtain more through social engineering.
In this case, the best thing you can do is change your Xbox Live account password if you happened to use the Xbox Entertainment Awards app earlier this week. You should also be wary of any messages sent over Xbox Live asking for your password of other personally identifiable information.