A report that it is possible to obtain credit card details from a wiped Xbox 360 hard drive is unlikely to be true, Microsoft has said.
Philadelphia's Drexel University claimed that a user's credit card details can be obtained from "wiped" Xbox 360 hard drives when using "basic hacking tools". This includes Xbox 360 hard drives which had been through Microsoft's re-formatting process.
The university hasn't revealed what hacking tools were used.
However, Microsoft says the report isn't likely to be true, but is conducting an internal investigation into the matter.
"We are conducting a thorough investigation into the researchers' claims," Microsoft told Joystiq. "We have requested information that will allow us to investigate the console in question and have still not received the information needed to replicate the researchers' claims.
"Xbox is not designed to store credit card data locally on the console, and as such seems unlikely credit card data was recovered by the method described.
"Additionally, when Microsoft refurbishes used consoles we have processes in place to wipe the local hard drives of any other user data. We can assure Xbox owners we take the privacy and security of their personal data very seriously."
Whilst claims that your credit card details are at risk seem unlikely, it might be best to avoid trading-in an Xbox 360 until you know for sure that your personal information is safe.