Microsoft looking into it, but says it is unlikely
Rumors have been circulating that a team at Drexel University in Philadelphia was able to use what they are calling “basic hacking tools” to obtain credit card information from wiped Xbox 360 hard drives, including those that had been through Microsoft’s re-formatting process.
Details are still sketchy, but Microsoft is conducting an investigation into the claims of this team at Drexel University. Microsoft believes that the report isn’t likely to be true, but it has requested information from the researchers on the Drexel team so they can attempt to replicate these claims.
Microsoft also commented that when used consoles are refurbished, they have a specific process in place to make sure that hard drives are wiped of any and all personal data. Microsoft says they take privacy and security of user personal data very seriously.
We will have to see where this leads. In the meantime, we have to say that we would think twice about trading in an Xbox hard drive right now until Microsoft lets everyone know whether the Drexel story is bogus or true.