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Skype, the popular software that lets users make phone and video calls over the internet using a microphone and speakers now has a Chinese version that isn’t so popular once you learn what it does.  First reported by news sources such as PC Magazine and Cnet, this alternate version of Skype watches for certain words, and then blocks them from servers.

The Olympic Torch hadn’t even gone cold before China once again began its usual activities of Internet censorship and spying, and the president of Skype, Josh Silverman, said he knew his partner company in China, known as TOM would be monitoring Skype users.  Canadian researchers have reported that TOM truly is “engaging in extensive surveillance with seemingly little regard for the security and privacy of Skype users.” You can be sure that contact information, personal details and other data is being tracked and stored if it involves chat the TOM-Skype company regulates.  Keywords that have anything to do with Taiwan, anti-government sentiment or Falun Gong are all being closely watched.

What’s worse is that research shows that the proper steps to safeguard the data aren’t being taken.  It’s encrypted, but the keys to unencrypt the data are stored on the same server, so anyone with a knowledge of cracking or hacking a server can take this data and decipher it with little problem.  Everything they need is right there.  And this doesn’t affect just China but every Skype user everywhere, in every country.

Log files are kept on any connection that is routed through TOM-Skype, so users contacting China are at risk as well.  If you were already worried about your internet privacy, China Skype has just upped the ante.  This is a perfect time to invest in IP Changer software or anonymous proxy software to protect your information and yourself.

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