German states use spyware to eavesrop on suspects

While a laptop was being checked when passing through German customs, spyware was allegedly installed on the computer by the authorities.
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Search engine client virus

A recent bunch of virusses (gumblar and bahama botnet (youtube demo)) redirect your search results to advertising sites before going to the desired target.
You never get to see the intermediate sites, but they gain money through advertisement hits.

SMS hack

Smart phone hacks by sending an SMS have been reported. How can a plain dumb short txt turn viral?
The hack works by tweaking the message headers. The SMS can execute malicious code on the smart phone (the example in this case is an iPhone, but other phones have other vulnerabillities). You do not even have to read the SMS.