University of Toronto researchers have uncovered a Chinese espionage network that has infiltrate into foreign embassies, news services and even the office of the Dalai Lama via the Internet.

The 10-month investigation says the system called GhostNet method of operation is infiltrating the unsuspected host computers with malware, a Trojan (horse) known as ghOst RAT via emails.

When activated, the malware will then relay the information back to servers located on the Chinese mainland.

The researchers are claiming that the computers involved are almost exclusively in China, but stopped short of saying that the Chinese government was involved.

Some 1,300 “infected hosts” in 103 countries, including the Dalai Lama’s private office and the Tibetan Government in exile have know to be infiltrated.

Talk about being unfair eh. Why is China not allowing us access to them with its Great Firewall of China, yet they’re stealing secrets from us.