What happens if the hacker gets in and set up a "trusted PC" for your account on his end ? Is it possible ? What does the password-less download profile ban25 mentioned do ? Why does one need it ?
the ban 25 comment resets your profile so only the CURRENT console machine you are using allows access to your profile without a password and any other machines that your profile is on is locked without the password.
this other feature below is for recovery of a hacked Live ID acocunt itself that your console is linked to, not your "on console" gamertag per se. so you can take control of your live ID and change your password again including your consoles password
Account recovery – kicking out the hijackers and keeping them out
Spammers traditionally created their own accounts, but as we’ve cracked down on this practice, they’ve resorted to hijacking and exploiting the accounts of legitimate users to send spam. With today’s release, we are taking a step forward by detecting compromised email accounts, those co-owned by the legitimate user and the hijacker. We detect them with high confidence using heuristics based on login and account activity, and stop the abuse by locking the hijacker out and closing back doors they may have set up, like using vacation auto reply messages to send spam. At the same time, we begin working with the rightful owner to reclaim the account, recognizing the urgency of the issue.
The fastest way to get your account back, whether it was locked or you simply forgot your password, is to reset the password using account proofs. Proofs are like spare keys. If you set them up in advance, you can later use them to prove you are the legitimate account owner. Up until now, we’ve offered two proofs, an alternate email address and a personal question paired with a secret answer. However, there were limitations to these. For example, only 25% of people with a secret question actually remembered their answer when needed.
Today, we are introducing two new kinds of proofs for account recovery.
- “Trusted PC” is a unique new proof that lets you link your Hotmail account with one or more of your personal computers. Then, if you ever need to regain control of your account by resetting your password, you simply need to be using your computer and we will know you are the legitimate owner.
- The second new proof option is your cell phone number, where Hotmail will send a secret code via SMS that can be used to reset your password and reclaim your account.
Additionally, today’s release is making account recovery more secure in Hotmail. Before you can add a new proof or change any existing ones, you will need to be able to access at least one existing proof. For example, if your account was already set up with an alternate email proof and you wanted to add a cell phone number as well, you would need to use the alternate email address to do it. This means that even if a hijacker steals your password, they can’t lock you out of your account or create backdoors for themselves. You will always be able to get your account back and kick the hijackers out
http://windowsteamblog.com/windows_...dates-protect-you-from-account-hijackers.aspx