About 120 countries are developing ways to use the Internet as a weapon to target financial markets, government computer systems and utilities, Internet security company McAfee said in an annual report.

Intelligence agencies already routinely test other states' networks, looking for weaknesses, and their techniques are growing more sophisticated every year, the report states. Governments were advised to urgently shore up their defences against industrial espionage and attacks on infrastructure.

"Cybercrime is now a global issue," said Jeff Green, Senior Vice President of McAfee Avert Labs. "It has evolved significantly and is no longer just a threat to industry and individuals but increasingly to national security."

The report said China is at the forefront of the cyber war. China has
been blamed for such attacks in the US, India and Germany, although China has repeatedly denied the claims. "The Chinese were first to use cyber attacks for political and military goals," James Mulvenon, Director of the Centre for Intelligence Research and Analysis in Washington, was quoted as saying in the report.
The report was compiled with input from academics and officials from the UK's Serious Organised Crime Agency (SOCA), the US Federal Bureau of Investigation (FBI) and Nato.



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