Summary
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Microsoft Rewards has acknowledged and fixed the suspension.
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Accounts incorrectly flagged for suspension have had points restored after correction.
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Some users still had problems and had to reboot their devices to get the accounts back to normal.
Microsoft Rewards released an official statement on recent account suspensions reported by users. This issue has upset many Microsoft Rewards users because they haven't done anything wrong to warrant a suspension.
Earlier, myriads of users started reporting that their Microsoft Rewards accounts were flagged and suspended. The suspension claimed users were guilty of one of several different things, including having more than one account, providing false information, using a rewards program in areas where it's not available, or using bots or a VPN to earn more points than they should . However, those who reported these suspensions claimed to have done none of these things.

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Now, Microsoft Rewards has officially addressed the concerns, acknowledging that an unnamed issue led to the inadvertent suspension. There's no explanation as to what went wrong, though some users have speculated that the company may be working on new methods to detect fraudsters and its rollout didn't work properly. Regardless, thankfully Microsoft got to the bottom of the problem pretty quickly and has already released a fix that should revert the suspension to any accounts that were incorrectly flagged. Many users have since reported that their accounts are back to normal and their points earned through Xbox Game Pass quests and other online tasks have been properly restored to what they were before.
Microsoft noted that all affected accounts will return to normal “over the next few hours,” so not all users immediately found their accounts back in working order. As the hours have passed since then, more users have recovered their accounts. However, some have reported that they not only need to log in and out of the program, but also completely restart their computers or phones to get the account to show up correctly again. Those who are still having problems with the rewards program should try to do the same. If this fails, it is advisable to contact support for further assistance.
Microsoft Rewards has caused headaches for users in the past, but this is usually due to a change in the way rewards are earned or the amount users earn after completing certain tasks. While it can be annoying to encounter issues like this wave of suspensions or reward changes, at the end of the day, Microsoft Rewards still allows users to earn gift cards and even get a free Xbox Game Pass subscription. With any luck, Microsoft can figure out what went wrong with this rollout and make sure it doesn't happen again.