Malware made which can share a smartcard over the internet
'Use a bank or ID card as though you had it with you'
Regcast training : Hyper-V 3.0, VM high availability and disaster recovery
Security researchers have developed proof-of-concept malware that allows attackers to obtain remote access to smart card readers attached to compromised Windows PCs.
The experimental malware developed by Itrust Consulting allows hackers to share a USB-based smart card reader over the internet. As such the attack goes one step further than previous assaults, such as a recent variant of the Sykipot Trojan that hijacked US Department of Defense smart cards in order to access restricted resources. This so-called 'smart card proxy' attack was software specific, targeting PCs attached to smart card readers running ActivClient, the client application of ActivIdentity.
The experimental malware developed by Itrust Consulting ought to work with any type of smart card and USB-based smart card reader, at least in theory, so it promises to be both more flexible and powerful than that abused by the Sykipot Trojan.
The attack is due to be demonstrated by Paul Rascagneres, a security consultant at Luxembourg-based Itrust Consulting, at the MalCon security conference in New Delhi, India, on 24 November. A summary of the upcoming Smartcards Reloaded - Remotely! presentation sets the scene.
We showcase a new kind of malware that uses a self made driver that make USB over TCP/IP. So the malware shares the smartcard connected in USB of the victim directly to the command and control (c&c) server in raw. The attacker can use the smartcard as if it is directly connected to his machine!
Smart cards are normally used in tandem with PIN codes or passwords for two factor authentication (secure login using something you have - the token, and something you know, a PIN). The prototype malware comes bundled with a key-logging component capable of stealing such login credentials, providing they are entered into an infected PC attached to a smart card reader.The credential stealing attack would not work in cases where users enter their PIN into a physical keyboard included with a smart card reader, IDG reports.
Rascagneres and his team tested their malware prototype with smart cards issued by Belgian banks and the electronic identity card (eID) issued in Belgium.
The drivers created by the researchers are not digitally signed, one way that the attack might be detected. However bad guys might be able to get around detection by either using stolen digital certificates or using malware (such as the TDL4 rootkit) capable of disabling the driver-signing policy on 64-bit versions of Windows 7. ®
COMMENTS
And?
Shock - software which runs with administrative rights on an Internet-connected computer could send data collected from peripherals to an external computer without your permission.
Next!
(P.S. how is this different from a keylogger reading your USB keyboard? And USBoIP software has been available for years - I was looking into it on Windows 98, but it was all too expensive and low-compatibility back then.)
So it's a long USB cable then?
So it's essentially a very long USB cable, but they've replaced the bit in the middle with a network link?
Re: Err...
Can it be used to up your Full English Breakfast quota on the combo network login / door access/ lunch payment cards in certain companies? I mean, gotta get the important things first ;)

IT infrastructure monitoring strategies
Agentless Backup is Not a Myth
Top 10 SIEM implementer’s checklist
Steps to Take Before Choosing a Business Continuity Partner
Requirements Checklist for Choosing a Cloud Backup and Recovery Service Provider