Hackers could take over accounts
Microsoft has fixed a critical security flaw in Hotmail that made it possible for hackers to take over other people's accounts.
The Microsoft security team said it had "addressed a reset function incident to help protect Hotmail customers", and that no further action was needed on the customer's part. The exploit, spotted by Vulnerability Lab researchers, targeted the Hotmail password reset facility with a Firefox add-on called Tamper Data.
It allowed an attacker to reset the Hotmail/MSN password with attacker chosen values. Remote attackers can bypass the password recovery service to setup a new password and bypass in place protections. Successful exploitation results in unauthorised MSN or Hotmail account access.
The WhiteC0de blog noted a week ago that the exploit had spread like wildfire across the hacking community, with victims losing cash and usernames.