Researchers from Microsoft Research and the University of Michigan have developed proof-of-concept code to demonstrate how to hide rootkit software in virtual machine environments. Taking advantage of known vulnerabilities, the rootkit places a virtual machine monitor beneath Windows or Linux installations. The rootkit, dubbed SubVirt, is undetectable because security software doesn't have access to its state.

File deletion was computer fraud

A federal appeals court has ruled that employees can't delete files from a company computer before leaving their jobs. International Airport Centers LLC, believing that Jacob Citrin began doing personal business while still employed, hoped to find incriminating evidence on his laptop. A lower court initially threw out the case against Citrin, but the appeals court said he had violated the Computer Fraud and Abuse Act by deleting files.

Data miner settles

Datran Media Corp. has agreed to pay US$1.1 million to New York to settle a lawsuit filed by the state's attorney general. The lawsuit alleged that Datran mined data from companies that had pledged not to share the information. Datran allegedly knew of the pledges but nonetheless sent spam to about 6 million e-mail addresses collected from those companies. Under the agreement, Datran must cease using improperly obtained e-mail addresses, destroy those it has and buy no lists without first checking to see if the data has use restrictions.