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Here's an interesting story we came across over the weekend! The likes of Eurogamer, Windows Central and Tom's Hardware have all been picking up on a Reddit post in which an Xbox fan claimed to have successfully sued Microsoft.
The person in question explained that a few months ago, their Microsoft account got hacked and they were unable to retrieve any of their digital games as a result. After speaking to the Microsoft Support team, they weren't able to get to a resolution other than their account being suspended - something they obviously weren't too happy about.
"My acc got compromised even with 2FA active. Microsoft support confirmed via email (its one of the evidences in my lawsuit) that the acc was compromised and their solution was to block my acc and tell me to buy all my games again in a new acc."
They then apparently took Microsoft to court in Brazil, where they were able to obtain the services of a public defendant at no charge. We're not really clued up on how this works in Brazil, but the OP says you can obtain public defendants for Consumer Protection cases without incurring additional costs or lawyer fees.
To cut a long story short, they claim they were successful in their aim to get the account back:
"I'm from Brazil, this is probably unique to my country. Here you can get a public defendant to sue a company for you in a Costumer Protection case. I went to the local Forum. I asked for a Defendant. He set everything up for me, collected the evidence I provided. 1 month later we had a settlement dispute, Microsoft offered no settlement. The Judge asked me to provide my account of the facts, the defense provided a 300 page pdf with their defense. 1 month later, today, the sentence came out."
The resolution is that Microsoft is supposedly being forced to reinstate the account and all their games (although if it's been hacked, we're not sure how that's even possible), along with R$ 2,000.00 - equivalent to around $400 USD.
Ultimately, there's only so much we know about what actually happened here, so we're not going to analyse it too much. What we will say is that instances of hacked Xbox accounts do occur from time to time, and we've seen situations where Microsoft has managed to recover the account after all, such as in the following example:
Our main bit of advice is obviously to keep your account as protected as much as you can, which means using two-factor authentication and maybe going passwordless as well. Should the worst still happen though, get in touch with Microsoft Support and look for tips online (like the ones above) if you feel like you're not getting anywhere.
Taking Microsoft to court in a situation like this is a bold move that has no guarantee of success, and you're always going to be better off trying to fix the situation with Microsoft Support directly. That said, it's clearly distressing if it happens, and we hope Microsoft is able to find additional ways to recover more hacked accounts in the years to come.