Minecraft account lost to Phishing Scam.

Its definitely a scam it looks like a phishing attempt to get live id's and steal accounts.

Sorry I forgot to put the link about your account security including avoiding phishing scams.
Click here. That link is for account security.

Phishing Scams
Phishing is a type of internet scam designed to trick you into revealing your login credentials, such as your Windows Live ID and password, or information about you or your accounts that can be used to gain access to your account. Phishing is typically attempted
through spoofed or fake emails, websites or other means of communication. You may be phished via:

• Email messages that appear to be from a coworker or friend with links to a web site or asking for information about you or your account(s)
  
• An instant message that appear to come from someone in your friends list with a link to a web site
  
• An email appearing to come from XBOX or Microsoft
• A "Spoof" web site, pretending to be an Xbox LIVE website with a Windows Live ID login page
  

Regardless of the phishing method, the single most important thing to remember is: Do not reveal your login credentials or other information about you or your account(s).

More information on different types of phishing scams, and what you can do to protect yourself is available from Microsoft here: www.microsoft.com/protect/yourself/phishing/default.mspx

Please check here under your account but normally you will be asked to setup an exchange in the Xbox system.

Be cautious of phishing and scams.

Myservice.xbox.com

Hi Emma Cave,

Thank you for the swift reply.

We appreciate you have provided us the answers that we are looking for.

By the way, out of all the browser you tried to use, did you accept the cookies for the Xbox website? Accepting cookies may affect your browsing experience on that site and you may not be able to access some features or content. I once had reported issues contacting Xbox Live Support, but the error message has been related to virtual agent where they are one step away from contacting the live team. You might have notice something like this:





Do you mind trying again and see if you will get different result?

To answer your question, it could have been that the hacker has obtain your account credentials by using one of this phishing tactics - What is Phishing? | Microsoft Security. The account that is not secured or just simple as email + password and without security information to delay/prevent/notify you with any access of non-account owner (like text in phone number, email from alternative email account, Microsoft authentication code to be generated). It would be easier for them to collect your credentials using their methods like stated from the support article.

They could have used another email to be set as primary email account or alias and remove your email - Add or remove an email alias in Outlook.com - Microsoft Support.

I have noticed this thread you posted first month of the year - Minecraft account lost to Phishing Scam. - Microsoft Community. If you have been a victim of Phishing email, before that happen. please take your time securing all emails or accounts you already created. This is to prevent someone or something to use your data.

Please read more here:

Protect yourself from phishing - Microsoft Support

Protect yourself from online scams and attacks - Microsoft Support

Regards,

They've never done draws for that sort of prize on LIVE but check it then record it as a scam with keywords on the forum if it is a phishing scam.