We’ve all seen Xbox Live code generators promoted online that claim to generate working MSP and XBL codes, most of these are just scams trying to get your email address and password. That was until a website launched earlier this week that generated working codes, hackers who set up the website managed to find a way of changing a number of values on redeemed codes in order to generate working codes that included Microsoft Points, Xbox Live memberships and even Halo: Reach items.

The site was shut down as soon as Microsoft became aware of it, but during the time it was up a reported $1.2 Million worth of codes had already been redeemed. Microsoft has not yet commented on how they are going to deal with this issue.