According to Yahoo blogger Ben Patterson: The Gadget Hound

The latest: An offer for 1,600 free Microsoft points! Just plug your Xbox Live info into a site you've never heard of! Hurry!!

Yep, sounds too good to be true, and indeed it is. 1UP.com reports that these free MS points" phishing scams have been making the Xbox Live rounds lately, and they go something like this: You get a message in your Live mailbox from a buddy, along the lines of ...

M2AF everybody go to loginxbox.tk I just got 1600 MS points Hurry though!! I think it is a limited time offer

Of course, if you go to the site ("loginxbox.tk" is long gone, but I'm sure others will pop up in its place) and log in with your Live information, you won't get any MS points; you will, however, spam everyone on your Xbox Live friends list with the same phishing message, and you'll have compromised your account info in the bargain.

The bloggers at Xbox 360 Fanboy has been tracking similar scams as early as May, and they've got a series of tips for avoiding phishing schemes like this one, including:

1. Beware of free MS point offers that don't link directly back to a Microsoft site;
2. Never, ever plug your Passport credentials into a non-sanctioned Xbox site;
3. Don't give your Live login into to anyone (and remember that Microsoft reps will never ask for your password);
4. And, of course, don’t give out your credit card number, mailing address, etc.

Anyone else get a phishing message in their Live inbox? 

Related:
Beware of Xbox Live Phishing Scam [1UP.com, via Kotaku]