I called MS this morning and explained the whole thing. It took 30 minutes, but it was kind of fun because they asked me lots of questions and I had to tell them how it all went down. It was like an episode of CSI, but nerdier and with a bit less blood and guts!
The have locked my account for 10-14 days while they investigate. They said they'd reverse the charges and get my account back to normal.
Looks like I was wrong about the keylogger. Someone called Xbox customer support two days ago and convinced them that they were me and then asked to reset my password. Supposedly the person would have had to have all my details (name, address, phone number, last 4 of my credit card, etc) to get this done. At least that means my computer probably isn't compromised, which is nice because I wasn't looking forward to wiping it...
That's cool that they're going to restore your account. It would be a bummer to loose 'Jake' as your user name. Not very many people are lucky enough to be able to just use their first name. You got that when you were working there, right, doing testing before Xbox Live first came out?
Cool that your computer is not compromised, but that sucks that somebody has all that info about you. Hope you've taken the appropriate steps with your credit cards and such.
Hmm, sounds like an "inside" job to me. You'd better keep an eye on Jessica during the day; she may have inherited your mad hacking skillz...
Thats pretty crazy! You sure Kara didn't just wanna buy stuff using your credit card? Well I guess she could have just walked over to your wallet...but then again, maybe she wants to make your life even more exciting hahaha. Glad that everything seems to be getting resolved smoothly.
But there is no way that they could have the name, address, phone number, last 4 of your credit card, etc...
Wait, is it actually possible?
Ok, I take back my previous statement..
THIS would be the scariest thing ever...