Microsoft admits security flaw

Software giant Microsoft has admitted a security flaw in its popular Internet Passport service that left 200 million consumer accounts vulnerable to hackers and thieves.

The admission could expose the company to a hefty fine from US regulators.

Microsoft said it fixed the problem yesterday after a Pakistani computer researcher disclosed details of it on the internet.

Product Manager Adam Sohn said the company locked out all accounts it believed had been altered using the flaw.

He refused to say how many people were affected, but said it was a small number.