Microsoft says it's "unlikely credit card data" can be recovered from refurbished 360 hard drives

Microsoft has responded to a report inked by a research group at Drexel University claiming refurbished Xbox 360 hard drives retained the credit card information of previous owners.

Here's the response provided to Joystiq by Microsoft's manager of interactive entertainment business, Jim Alkove:

"We are conducting a thorough investigation into the researchers' claims. We have requested information that will allow us to investigate the console in question and have still not received the information needed to replicate the researchers' claims.

"Xbox is not designed to store credit card data locally on the console, and as such seems unlikely credit card data was recovered by the method described. Additionally, when Microsoft refurbishes used consoles we have processes in place to wipe the local hard drives of any other user data. We can assure Xbox owners we take the privacy and security of their personal data very seriously."

In other words, Microsoft said it's not possible, but it's still looking into the matter.