Microsoft backtracks; Hotmail data may have been compromised

“silicon.com has discovered that Hotmail was actually attacked by a variant of Code Red – not the original version. This worked in a slightly different way from its predecessor, and would have opened up a backdoor to the Hotmail servers.

One silicon.com reader – Jonathon Rickman, from security research and incident response team X Corps Security – said even though he supplied Microsoft with evidence which showed Hotmail’s compromised system was attacking his, the company ignored him.”