I find this less than impressive, but it has generated a lot
of press this past week. Apparently, Skype users were laboring under the delusion that Skype's heavy use of encryption made it impervious to bugging. They all got a rude wakeup call when Ruben Unteregger, a Swiss programmer, released the source code for a "virus" which bypasses Skype's encryption by hooking the Windows audio subsystem and directly recording the audio stream to MP3.
Some computer viruses have a crude but scary ability to spy on people by logging every keystroke they type. Now hackers and potentially law enforcement have another weapon: a virus that can eavesdrop on voice conversations that go over computers instead of a regular phone line.
The capability has been shown in a new "Trojan horse" virus that records Voice over Internet Protocol (VoIP) calls through the popular Skype service. Skype calls are free or low cost and can work between two computers or between one computer and a phone.