Oh man. This has got to be the mother of all nightmares for anyone 
concerned about keeping passwords private and intact.

http://news.bbc.co.uk/hi/english/sci/tech/newsid_1638000/1638795.stm

I'm not sure how this works but it looks like its a dongle that costs no 
more than $150 that can be used to sniff passwords and that is easily 
inserted inline with the keyboard connector.  Now if there was ever an 
excuse to make a law against something this must be it.

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