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Canadian researchers at the University of Toronto’s Munk Centre for International Studies in conjunction with the SecDev Group and the University of Cambridge Computer Laboratory have discovered a huge cyberspy network based in China and say it has infiltrated more than 1,000 computer networks in over 100 countries.  Dubbed GhostNet by the researchers, the cyberspying malware is able to completely control any computer it infects.  It can search and download files, turn webcams and microphones on and off, and more.

The suspicion that such a network existed and that China was behind it began when the Dalai Lama’s office sent a foreign diplomat an email inviting him to meet with the spiritual leader.  Before the staff could follow up their invitation with a phone call, the diplomat received a warning from the Chinese government warning him not to accept the invite.  While China is denying any and all knowledge of such a network and claiming cybercrime is strictly forbidden by their government, they aren’t saying how they found out about the diplomat’s invitation or why they warned him to stay away.

It’s not known if the network is at all linked to the Conficker worm, which has infected nearly 15 million computers and is expected to unleash a new variant of itself on April 1.  However researchers have discovered that the worm also originated from China.  In any case, this is a very good reminder to do regular data backups and make sure your anti-virus and firewall software is up to date and functioning properly.

Read [CNet]