Virgin’s TV service sets it apart from most other Internet providers who usually only offer internet based television services that are limited in scope compared to cable. Virgin is also the fastest provider of broadband in the UK. The company is often criticised for its very stringent views on heavy downloaders however, implementing a restrictive cap on speeds for anyone using their maximum speed to download during peak times.

Despite this, Virgin are still after as many customers as they can get their hands on, and have made their larger broadband packages more appealing with a new scheme called “V Stuff”. It sounds mysterious, but it offers free online storage and free photo prints for new users which get renewed every year. There are a number of companies already offering free or advertising based online storage services. However, with the biggest broadband package Virgin offer, there’s unlimited storage and 1,200 free photo prints a year. It might not be enough to convince everyone, but at least it’s an offer with some substance, and combined with the company’s incredible speeds and cheap broadband deals, it might be enough to attract people who have been sitting on the fence where cable is concerned.

In the same week however things wrong at Virgin when the ASA upheld complaints about an ad run in national newspapers. The ad compared ADSL to cable, claiming that “10 out of 10 homes with our fibre optic broadband can get 20Mb”. Complaints were made by both the ASA itself and long-time Virgin competitor, BskyB stating that Virgin could not possibly be able to provide 20Mbps broadband to all its users all the time. It seems odd that Virgin would trip on this considering that speed is one of the clear advantages of using Cable over ADSL services and misleading comments simply aren’t required to convince most people of its advantages. The ASA have sent Virgin a warning not to print the adverts in their current form.

Hackers were able to access a loophole in the Virgin Media software, allowing them to simply take the software update from the new modems and apply it to their old ones, giving them access to the new speeds. Over 1,000 lines have reported achieving speeds of 30mbit and upwards, 10mbit faster than Virgin’s mid-range package. It’s not yet known exactly how long this has been happening.

Virgin Media were quick to respond, telling technology blog The Register that it “takes the issue of fraud on its network very seriously”, and will not hesitate to prosecute anyone caught using this method. Ensuring legitimate users they have a “number of technological features” at their disposal to help them find the hackers. Virgin has insisted that a recent network upgrade has allowed them to see exactly which users are abusing their service.

Hackers meanwhile have spread this information far and wide on the internet and anyone with the access to the right hardware and rudimentary knowledge of modems are able to apply the method. Many have claimed that hack is untraceable, but this remains to be proven. It’s likely that if Virgin can’t yet find the hackers they’ll be funnelling significant resources into catching them as soon as possible. The threat of legal action alone might be enough to stop many of the hackers from using the method.

Exactly how such a gaping hole in the Virgin Media’s software has gotten through to end users is unknown. One thing is sure however; anyone caught could end up in jail, with a maximum sentence of 12 months for found guilty under the 2006 Fraud Act.