Windows Live Team Blog response, update below: Update: Phishing scheme affecting some Hotmail customers
As of 3pm PT: We want to provide a quick update, that as a result of our investigation we are taking measures to block access to all of the accounts that were exposed and have resources in place to help those users reclaim their accounts.
If you believe your information was documented on the illegal list, please fill out the following form to reclaim access to your account.