Microsoft seems to be dropping the ball on this one. The most recent Xbox update provided the ability for players to save their gamertags to a USB drive, a great idea for those who play on the go since tag recovery can take an hour easily. Unfortunately within a few days, people figured out how to hack the files to change their displayed names (often to something spectacularly racist), or even unlocking additional prestige levels in Call of Duty. Live had been reasonably free of hacking thanks to the closed nature of the system, but a good idea has gone horribly wrong quick.
Unlike hardware hacks, this isn’t such an easy detection, and I’ve seen no official comment on the problem. Here’s hoping Ryan Treit, aka Treit and True, addresses the problem or Mircrosoft expands the mod teams to deal with this. Most of the gamertag hackers, afterall, just can’t seem to resist flaunting it via colorful display names or ones using system symbols.