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Hackers look to hardware viruses
Criminal hackers are creating malicious hardware which experts warn will be much more difficult to detect than conventional software-based malware. A team led by Samuel King, assistant professor at the University of Illinois, Urbana-Champaign, has demonstrated how to gain control of a computer by adding malicious circuits to its processor. Such circuits are effectively invisible to antivirus and other security software because they interfere with the computer at a deeper level than a software-based virus or even a rootkit. King's team explained to New Scientist that they used a processor called a field programmable gate array (FPGA), in which logic circuits can be rearranged to create a replica of an existing open source processor called Leon3.

Read more at:
http://www.hackinthebox.org/index.php?name=News&file=article&sid=26540.
 
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