ebay says a flood of modified Xbox 360 video game consoles that have been banned from connecting to Xbox Live has hit the online auction site, and is warning users to be wary of what they buy.
“If you are looking to buy an Xbox 360 on eBay in the near future, ask the seller if it has been banned from Xbox Live and be sure to pay by PayPal in case they lie,” the company said on its website. “If you do get a banned console, start a PayPal claim.”
PayPal is eBay’s online payment system, which can reverse charges in the case of fraudulent sales.
The announcement comes after Microsoft this week banned up to one million consoles from accessing its Xbox Live service, where users can play online games with each other or purchase downloadable content such as movies and television shows.
The company enacted the ban on consoles that have been modified by users to play pirated copies of games.
“All consumers should know that piracy is illegal and that modifying their Xbox 360 console violates the Xbox Live terms of use, will void their warranty and result in a ban from Xbox Live,” Microsoft said in a statement.
Affected gamers can still get online by signing in from an unmodified machine, but the “modded” consoles are permanently banned from Xbox Live, Microsoft said.

A federal judge Friday denied a request from a small Virginia company to stop the online auction powerhouse eBay Inc. from using a feature that allows shoppers to purchase items at a fixed price…
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Only established eBay Inc. vendors _ those who have racked up comments from at least 50 previous customers and have positive ratings of at least 98 out of 100 points _ can list PS3s before Friday. Each vendor can only list only one PS3 per eBay account.