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FBI's "Magic Lantern" virus.
Tue Jan 27 17:03:01 2004
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FBI's "Magic Lantern" virus.

http://abcnews.go.com/sections/scitech/CuttingEdge/cuttingedge011221.html

Shedding Light
on 'Magic Lantern'
Secretive FBI Computer Spy Program Sniffs Out Hidden Passwords

By Paul Eng

Dec. 21 — In order to stop criminals and terrorists who may be plotting evil
deeds using computers and the Internet, the FBI is developing a tool that is
more commonly associated with computer hackers.

According to the FBI and other law enforcement agencies, computer-savvy
criminals are increasingly turning to encryption software to protect their
sensitive data from prying eyes. Programs such as Pretty Good Privacy, or PGP,
scramble computer files so well that it takes years for even the most powerful
supercomputer to crack them without the appropriate "key."
But instead of trying to "pick" open any locked files, the FBI hopes agents
could one day just copy the criminals' keys by using a program currently
code-named "Magic Lantern."

The FBI recently confirmed that the agency did indeed have a computer project
called "Magic Lantern" underway. But since the project was still "under
development," the bureau declined to reveal further details about its design or
capabilities.

Copying Keys by Logging Keystrokes

But according to news reports, the program may be a powerful version of a
hacking tool known as a key-logging program. Such a program, when installed on a
computer, monitors and stores copies of what is typed by the user — say a
password that starts an encryption program.

The FBI had used such a key-logging program last year in a criminal
investigation against Nicodemo Scarfo Jr., son of a convicted Philadelphia Mafia
boss. FBI agents had broken into Scarfo's office in New Jersey and installed a
key-logging program to capture Scarfo's software encryption key, which later
revealed vital evidence against the alleged loan shark. (Scarfo's case is still
being tried in federal court.)

But more than just an electronic surveillance tool, experts believe Magic
Lantern may also be able to secretly install itself on an unsuspecting user's
computer, much like a computer virus. The program could be disguised as a
harmless computer file — a so-called "Trojan horse" program — and sent as an
attachment to a benign computer e-mail.

Mark Rasche, a former prosecutor with the Justice Department, says that such a
capability wouldn't be impossible. Such Trojan horse attacks have been used in
recent computer attacks such as last month's Badtrans worm. "We know that
19-year-old teens from the Phillippines can do this," says Rasche, now a vice
president of cyberlaw at Predictive Systems in Reston, Va.

Critics Already Crying Foul

Whether or not the FBI's latest cybersnooping tool is truly the ultimate
cyberspy is still questionable. But one thing is for sure: critics are already
crying foul over the still-secret FBI program and its hypothetical potential.

Although the FBI says that Magic Lantern would only be used "pursuant to the
appropriate legal process" — i.e., under a court-approved search warrant —
privacy and legal experts worry that the program could violate citizens' civil
right to be free from unreasonable searches and seizures. Lawyers for Scarfo,
for example, have petitioned the courts to review the legality of the evidence
gathered by the FBI's previous key-logging program.

What's more, security experts suggest that like other Trojan horse viruses, the
FBI's Magic Lantern may be discovered by anti-virus programs. And security
software makers such as Symantec and Sophos have already taken the position that
they won't treat a Magic Lantern bug any differently than any other computer
virus.

"Malicious code is malicious code," said Graham Cluely, senior technology
consultant for Sophos Anti-Virus, in a statement last month. "If a customer
suspects they may be under surveillance and sends a Trojan horse to us, we're
going to provide protection against it."
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Politech: FBI reportedly creating "Magic Lantern" anti-crypto ...

FBI software cracks encryption wall
... virus onto a suspect’s machine and obtaining encryption keys, a source familiar
with the project told MSNBC.com. The software, known as “Magic Lantern,” ...
msnbc.com/news/660096.asp - 24k - Cached - Similar pages

Politech: FBI reportedly creating "Magic Lantern" anti-crypto ...
... Your contribution will go toward paying for bandwidth and hosting costs.
FBI reportedly creating "Magic Lantern" anti-crypto virus. ...
www.politechbot.com/p-02822.html  - 7k - Cached - Similar pages

ABCNEWS.com : Shedding Light on 'Magic Lantern'
... What's more, security experts suggest that like other Trojan horse viruses,
the FBI's Magic Lantern may be discovered by anti-virus programs. ...
abcnews.go.com/sections/scitech/CuttingEdge/ cuttingedge011221.html  - 40k - Jan 25, 2004 - Cached - Similar pages

Sophos voices concern about FBI's Magic Lantern e-bug
... malicious code," said Graham Cluley, senior technology consultant, Sophos Anti-Virus
. "There's no reason why organisations targeted by Magic Lantern could not ...
www.sophos.com/virusinfo/articles/magiclantern.html  - 15k - Jan 25, 2004 - Cached - Similar pages

WorldNetDaily: The FBI's Magic Lantern
... that's correct, the FBI, wants to infect your computer with a virus. ... They call it
their "Magic Lantern." Possibly learning from their public relations debacle ...
www.worldnetdaily.com/news/article.asp?ARTICLE_ID=25471   - 22k - Jan 25, 2004 - Cached - Similar pages

Position on Magic Lantern
... If I were the FBI, I would install retail copies of the software on a clean machine
running only Magic Lantern, and when the latest virus updates trigger ...
 www.robertgraham.com/journal/020110-magic-lantern-position.html    - 8k - Jan 25, 2004 - Cached - Similar pages

The Register
... hackers? And antivirus vendors are mulling over the rights and wrongs
of putting Magic Lantern on their virus definition list. Eric ...
www.theregister.co.uk/content/55/23057.html  - 22k - Cached - Similar pages

The Register
... Some truth Assuming Magic Lantern exists, we can be sure that it's not a virus
and that it's not Trojan according to Lemos' examples of BO2K and SubSeven. ...
www.theregister.co.uk/content/55/23150.html - 24k - Cached - Similar pages
[ More results from www.theregister.co.uk  ]

SecurityFocus HOME Columnists: 'Magic Lantern' Rubs the Wrong Way
... If just one anti-virus software product detects Magic Lantern, the game is over.
But the anti-virus industry is directly affected by the FBI's move. ...
www.securityfocus.com/columnists/44  - 39k - Cached - Similar pages

Politech: FBI reportedly creating "Magic Lantern" anti-crypto ...
Politech: FBI reportedly creating "Magic Lantern" anti-crypto virus.
From: Declan McCullagh (declan_at_well.com) Date: Nov 20 2001. ...
seclists.org/lists/politech/2001/Nov/0084.html   - 14k - Cached - Similar pages