While xbox live has not been hacked or compromised there are other ways of stealing xbox live market place content with out payment via soft mods and other ways. Microsoft is now stepping up going after those people who steal DLC market place content with out payment. They have just banned a bunch of gamers that they claim have abused the xbox live marketplace and the DLCs.

During the course of a recent investigation, we have discovered users who illegitimately accessed Xbox LIVE Marketplace downloadable content. Our investigation reveals that this access was intentional and not accidental, constituting a blatant violation of the Terms of Use for the service. We will not divulge additional information regarding individual suspensions for these offenses.
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