Bitcoin Forum

Hacking Team broke Bitcoin secrecy by targeting crucial wallet file

In general, the Italian spyware company sold (and hopes to continue to sell) software that allowed targets to be surreptitiously surveilled as they used computers or smartphones, and its clientele included law enforcement agencies worldwide. Back in January 2014, Hacking Team internally announced a new feature as part of its version 9.2 upgrade to its Remote Control System suite, and the new iteration would include a way to "track cryptocurrencies, such as BitCoin [sic], and all the related information."

The Money Module also included support for Bitcoin alternatives including Litecoin, ... .

Nicholas Weaver, a researcher at the International Computer Science Institute in Berkeley, California, went through the same e-mails. He says that such a feature "shouldn’t be surprising."

"It is straightforward to grab the wallet.dat and related files and for malcode to get the password for this file when the user accesses their bitcoins," he told Ars by e-mail. "Similarly, one can also search for Bitcoin-related keywords in e-mail messages and other content on their computer. And once you have a copy of the wallet.dat file, you have the entire transaction history (as Ross Ulbricht can attest to)."

http://arstechnica.com/security/2015/07/hacking-team-broke-bitcoin-secrecy-by-targeting-crucial-wallet-file/

This isn't anything particular special and most competent people could do the exact same thing without the Itialian companies software as loing as they had remote access to the PC.

It is interesting because it can target and trace addresses. Theoretically you could trace stolen coins and steal them back, if I'm understanding this correctly. I think that would be kinda great. Imagine stealing back all mt.gox's coins?
This is going to lead to full on cyber-war