Major Nelson has issued a statement dismissing recent reports that there has been a collapse in security with Xbox Live and Bungie.net. Nelson says, "Despite some recent reports and speculation, I want to reassure all of our 6 million Xbox Live members that we have looked into the situation and found no evidence of any compromise of the security of the Xbox Live Network or Bungie.net."
Nelson goes on to say that there have been "isolated incidents" where users are trying to gain personal information. Microsoft is offering a PDF on how to protect yourself against identity theft. Seriously though, it's the internets, there are predators out there trying to steal your identity. Don't ever give someone your passwords or personal info.