US military access cards cracked by Chinese hackers

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Jack

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The Register said:
A new strain of the Sykipot Trojan is been used to compromise the Department of Defense-sanctioned smart cards used to authorise network and building access at many US government agencies, according to security researchers.

Smart cards are a standard means of granting active duty military staff, selected reserve personnel, civilian employees and eligible contractors access to intranets at US Army, Navy and the Air Force facilities. They can be used to get into buildings or, when used in conjunction with a static password, to access networks.

Chinese hackers have adapted the Sykipot Trojan to lift card credentials from compromised systems in order to access classified military networks, according to researchers at security tools firm AlienVault. An adapted version of the Trojan targets PCs attached to smart card readers running ActivClient, the client application of ActivIdentity, in what's been described as a 'smart card proxy' attack.

The Sykipot Trojan was first created three years ago and featured in a number of industrial espionage-style attacks. Researchers at AlienVault captured an adapted version of the malware - specifically designed to circumvent authentication technology supplied by ActivIdentity - in a honeypot around two weeks ago. Subsequent analysis suggests that hackers added a smart card module to existing malware around March 2011.

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