Spooks' spying software cracked

Russian anti-virus vendor Kaspersky labs has re-awakened the debate surrounding the FBI's Magic Lantern virus, claiming it will ensure its software can detect the trojan.

The news comes as the first malicious virus attempting to pose as Magic Lantern was discovered.

Magic Lantern is a trojan horse program reportedly written by the FBI to remotely install key-logging software on suspects' computers. The FBI would then have access to passwords for encryption keys held by any suspect, enabling it to read encrypted material.

The use of key-logging software to catch criminals has already been successfully deployed by the FBI in the case of suspected gangster Nicodemo Scarfo, when agents broke into his house to install the software on his machine.

What is new about the Magic Lantern virus is that the FBI will theoretically be able to install the software remotely and at will.

However, there is a row as to whether its software should be able to detect and deter the new virus.

Kaspersky said the existence of a virus that was already trying to pose as Magic Lantern showed that hackers would use the new technology for their own ends.

Denis Zenkin, head of corporate communications for Kaspersky, said: "This idea of Magic Lantern just isn't the right way to catch criminals. The code could be taken by hackers, and used for their own purposes - it would be irresponsible of us not to detect it for our customers."

Both McAfee and Symantec are reported to have said they are happy to help the FBI by not protecting their customers from Magic Lantern, as long as it didn't endanger them. However Symantec has since changed its mind, with CEO John Thompson saying the company had no intention of leaving any hole which might compromise customer security.

Details of the new virus posing as Magic Lantern - called Malantarn - can be found on Kaspersky's website at http://www.viruslist.com/eng/viruslist.asp .