Is Microsoft policy complicit with Gift Code fraud?

Account has been hacked. Account recovered and security reset, however the fraudulent transaction made will not be refunded as it is a gift code which has been redeemed and therefore I am being told that the refund policy will not allow a refund.

Is this correct? As this is a fraudulent transaction how can I be held to the T&Cs of the purchase when I did not agree to them as I did not make or authorized the purchase?

It will be interesting if what I am being told by the 4 different chat box advisors is correct. I can not find anything about fraud on the Microsoft website, it is not even a refund option.

I cannot believe that Microsoft would not take action against either the fraudster or the owner of the account which used the fraudulently obtained gift code. Is there a process where this can be escalated for Microsoft to take action?

:)