It's not hacking, it's skidding, he most likely downloaded a tool coded by somebody else and spread it over the warez scene, the guy is a script kiddy.
As I said, the amount of password stealers going around lately is unreal, and too many skiddies are getting a hold of them. But don't worry, with luck the anti-sec movement will put an end to it.
+1 on that. bittorrent is the safest option for downloading software now.. well, next to actually buying it lol
@Moby Master: you should always test software on a VM before doing anything with it, not on your actual system. especially keygens.