San Francisco - Microsoft has responded to reports of possible fraud on its Xbox Live online gaming service by launching an investigation into the allegations, CNET News.com reported on Wednesday.

Some users have said their credit card information was hacked and used to buy virtual currency on Xbox Live, which can be used to purchase game content, and more recently, TV shows and other media content.

"Recently, there have been reports of fraudulent activity and account theft taking place on the Xbox Live network," a Microsoft representative said in a statement provided to CNET News.com.

"Security is a top priority for Xbox Live, and we are actively investigating all reports of fraudulent behavior and theft."

While it's possible the security on Xbox Live was breached, some users believe that gamers could have been tricked into providing enough personal information that would enable a malevolent fellow gamer to contact Microsoft and have their account legitimately transferred, News.com reports.

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http://tinyurl.com/2nddf2 (CNET)