>However, PGP is extremely vulnerable to keystroke logging.
>Clipboard pasting your PGP password simply shifts the
>vulnerability to clipboard logging.  And the PGP private
>key would seem to be something one could grab off the
>user's hard drive over the 'net.

PGP may be vulnerable to keystroke logging in terms of capturing the
passphrase; but snagging the private key off of the harddrive is another
story.  PGP 8.0 running on XP locks the keyring files so you can't even make
a copy using the XP file manager.  It appears that the only way to copy the
keyring is to do it from PGPKeys by setting the backup directory and then
exiting the program.

In order to exploit the keylogging vulnerability, the cracker would have to
have sufficient access to the target's computer to be able to actually run
PGP and use the pilfered passphrase to decrypt or sign a message...  Some
trojans take advantage of a Microsoft "helpful" feature on XP by setting up
a "Remote Desktop" connection.  It is possible that via a remote desktop
connection the PGP program could be run and used to sign/decrypt messages or
payment instructions.  The amount of work required for a cracker to steal
Pecunix is at least an order of magnitude more than it is for e-gold. With
PGP-enabled accounts it is probably two orders of magnitude harder. Since
all crypto can ultimately be cracked, applied cryptography boils down to
making sure that it costs more to crack your keys than the value protected
by them.  It would seem that Pecunix is quite successful in that regard.

It will be interesting to see how Pecunix and others take advantage of the
new "PGP Universal."
http://goldeconomy.com/ct/t.php?l=144

It would seem strange to have PGP encrypted email that you never see or have
to manually decrypt.  How would you know if it wasn't working?

*



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