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A remarkable report was released yesterday by researchers at the University of Toronto. A very sophisticated malware distribution has been reporting from hundreds of infected computers for at least a year now. Among the computers affected are those of groups allied with the Dalai Lama, and the reports appear to be going to China. The malware has the capacity not only to send documents back, but to turn on the computer’s camera and microphone so everything that his happening in the vicinity of the computer can be observed. John Markoff has an excellent summary in the New York Times, and the full report is available for download here.

This is scary stuff, and no laughing matter. Other sites that were part of the network included a computer in an Indian embassy.

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