Microsoft Hotmail passwords leaked online

Microsoft confirms that thousands of Windows Live Hotmail account usernames and passwords have indeed leaked to the Internet as reported by Neowin.net. After learning of the breach, Microsoft “immediately requested that the credentials be removed and launched an investigation to determine the impact to customers,” Security experts say that if 10,000 passwords were lost, this would be a big attack, but not the biggest on record. Phishing schemes that have netted attackers 50,000 to 75,000 passwords have been recorded, especially when millions of potential accounts are available for attack.

WindowsLiveWire has a post up on the issue, and protecting yourself from phishing.