Hackers are targeting virtual currency Bitcoin, penetrating computers and swiping their digital wallets, according to computer security firm Symantec.

"Malware authors move fast," Symantec's Stephen Doherty said in a blog post about digital pickpockets targeting Bitcoin, which was created two years ago.

"We have seen a recent Trojan in the wild targeting Bitcoin wallets" in computers running various versions of Windows, Doherty said.

"It has one motive: to locate your Bitcoin wallet.dat file and email it to the attacker," Doherty said. "This is not surprising considering the potential values in a Bitcoin wallet."

Bitcoins are digital currency that are accepted by a few online merchants. They can be traded at online currency exchanges such as Mtgox.com for real dollars.

Doherty said Bitcoin users should consider encrypting their wallet files.

"If you use Bitcoins, you have the option to encrypt your wallet and we recommend that you choose a strong password for this in the event that an attacker is attempting to brute-force your wallet open," he said.

Earlier this week, a Bitcoin user going by the handle of "allinvain" claimed on a public Bitcoin forum that his computer had been hacked and 25,000 Bitcoins worth $500,000 stolen.

Bitcoins have drawn the attention of members of the US Senate recently following a report that they have been used to purchase prescription drugs, cocaine, LSD and heroin at an online network called Silk Road.

Senator Joe Manchin, a Democrat from West Virginia, and Senator Charles Schumer, a Democrat from New York, wrote a letter to the US Attorney General and the Drug Enforcement Agency asking for the immediate shutdown of Silk Road.

"After purchasing Bitcoins through an exchange, a user can create an account on Silk Road and start purchasing illegal drugs from individuals around the world and have them delivered to their homes within days," they said.

Japan to fine or jail computer virus creators
Tokyo (AFP) June 17, 2011 - Japan will punish people who create or wilfully spread computer viruses with fines and prison terms of up to three years under a law enacted by parliament on Friday.

Under the law, police can seize email communication logs of suspects from Internet service providers, among other information.

The action, which has met with opposition from privacy and free speech advocates, brings Japan a step closer to concluding the Convention on Cybercrime, a Europe-led effort.

The convention is the first international treaty to combat crimes committed via the Internet and other computer networks. Japan has signed the treaty but must pass relevant domestic laws to conclude it.

Under Japan's new law, people who create or distribute a computer virus with no justifiable reason face prison terms up to three years or fines up to 500,000 yen (6,200 dollars).

Those who deliberately store a computer virus face up to two years in prison or fines up to 300,000 yen.

Japanese police agencies had long pushed for such a law, but past bills failed amid strong criticism from privacy and freedom-of-speech advocates who have warned of excessive police powers.

The text of the law says that "in view of the realities of cyber crime associated with the advancement of information processing ... it is necessary to develop the necessary regulations".

Because of concerns the law could violate the privacy of communications guaranteed under the Japanese constitution, it includes a resolution that urges authorities to apply the law appropriately.