I must first clearly state that it is 100% Microsoft doing the banning.

I believe IW are just minorly helping with the problem.

This is the first piece of evidence for the situation...

"It has been confirmed by IW that they are dealing with this and that it is an exploit and can be reported as such."

This is the second piece of evidence...

14 - My LIVE account was suspended

These modifications may include, but are not limited to:

-     Altering the appearance of your Gamertag or avatar outside of the default parameters

-     Illegitimate gain of achievements or avatar awards

-     Application of watermarks or other special identifiers that were not legitimately granted

-     Unauthorized manipulation of in-game parameters

So, the bottom line is don't risk it as you may be banned and easily gives out your position and disruptes teamates. Please keep this thread alive to show everyone!

Extra Information

Update 1

We've heard that even Microsoft are banning people for doing this glitch, no just Infinity Ward and Activision. So we all assure you that you will probably be banned for this as 3 companies and the community are trying to sort this out.

Update 2

Activision are encouraging us not to annoy and teamkill this exploiters but to report them and then they should be banned. A file complaint should be an add on to the explot report, not just the File Complaint.

Update 3

Want more proof that people are going to get banned? Check out this forum posts on the OFFICIAL xbox website! These people's MW3 accounts are not getting banned but their entire xbox!

http://forums.xbox.com/xbox_forums/xbox_support/f/41/t/138495.aspx - You can more easily see on this one how he got banned.

http://forums.xbox.com/xbox_forums/xbox_support/f/41/t/135765.aspx - This one does not have as much information.

Update 4

Looking round forums I found a very good post that helps explain this:

Back in 2009 Microsoft banned over 1 MILLION people from Xbox Live. After that ban you neversaw a modded Clan Tag online EVER until this point. the rounds of MS bans will commence again.

As for more proof the Twitter post from the devs stated that was an exploit and appropriate action will be taken.

How much more proof do you need ? We are not going to look thru 40 million Gamers on Xbox Live to find a person for you.

Instead of the easy way out by going "no it isnt" why dont YOU find one page where a DEV from Activision STATES that you are ALLOWED to modify your clan tag.

You wont find one.

Update 5

Okay guys, check out these two links:

http://activision.custhelp.com/cgi-bin

/activision.cfg/php/enduser/std_adp.php

?p_faqid=78822&p_created=1321632585

&p_sid=oe3jjJJk&p_accessibility=0&pred

irect=&p_srch=1&p_lva=77717&p_sp=cF

9zcmNoPTEmcF9zb3J0X2J5PSZwX2dya

WRzb3J0PSZwX3Jvd19jbnQ9OTMsOTM

mcF9wcm9kcz0wJnBfY2F0cz0mcF9wdj0

mcF9jdj0mcF9zZWFyY2hfdHlwZT1hbnN3

ZXJzLnNlYXJjaF9ubCZwX3BhZ2U9MSZw

X3NlYXJjaF90ZXh0PWNsYW4gdGFnIGJ

hbg!!&p_li=&p_topview=1

http://www.metro.co.uk/tech/games/882356-

1-600-gamers-banned-from-modern-warfare

-3?fb_ref=ITO%3Dsocialnet-facebook-like&f

b_source=profile_oneline

Update 6

A quick tweet: ATVIMikey tweeted again today that these clantag glitches are a bannable offence