Keeping It Real

Recent events at XBOX Live! remind us how "real" virtual economies are. Very revently a number of XBOX Live! accounts were hijacked and Microsoft Points were purchased with the account holders' credit card information. Microsoft points to social engineering as the probable cause of the compromised accounts. A group calling themselves "Infamous" says they are able to steal 10 accounts a day by taking advantage of the people manning the Microsoft help desk. The group also seems to take accounts in retaliation for anything they take offense to (like someone else winning?).

Does this look like an online gaming "Mafia" to you? There's a group of people who "rub out" the accounts of hostile opponents and take over their "turf" (account and points). Over time, people will become afraid to offend them, maybe even to the point of "donating" Microsoft Points to these guys in exchange for them *not* stealing an account. Maybe they already have someone working on the inside at MS who helps them get account info. Other operatives can sell off ("launder") the points for real cash.

Yes, the Microsoft Points can be sold outside the game. I'm looking at a Yahoo! auction right now that has an $18 bid for 1600 points. If the points are stolen, this is all profit. Ten of those a day gets you $180 = $1260/week = $65+K/year. Look out Tony Soprano!