From the Times of India Enterprise IT section, emphasis added:

NEW DELHI: Hackers, allegedly belonging to a Chinese group called Evil Shadow Team, struck at on Sunday night, stealing login ids and passwords of people who had used the website for shopping Microsoft products.

While it is troublesome that hackers were able to breach security at a website owned by one of the biggest IT companies in the world, it is more alarming that user details – login ids and passwords – were reportedly stored in plain text file, without any encryption.

Absolutely inexcusable security in 2012. My only hope is this was a dodgy contractor doing shoddy work, and doesn’t represent standard Microsoft Store policy.