Microsoft Store India has been reportedly hacked by the Chinese Evil Shadow Team and they have released the usernames and passwords obtained from the breach of the online store.
According to The Verge, the usernames and passwords were stored in the clear, without any encryption. Microsoft Store India is not operated by Microsoft but it is owned and operated by an Indian company named Quasar Media. This company has been "appointed by Microsoft to own, maintain and operate the online store."
Microsoft operates 22 such localized online stores for countries like Australia, Germany, Korea and Japan. True to the adage that states that a chain is only as strong as its weakest link, a third party operator that failed to observe information and system security may have put a slight dent in the ability of the Redmond software giant to protect the confidentiality of its customers from security breaches.