arch/ive/ief (2000 - 2005)

MAGIC LANTERN installs so-called "keylogging" software on a suspect's machine that is capable of capturing keystrokes typed on a computer. By tracking exactly what a suspect types, critical encryption key information can be gathered, and then transmitted back to the FBI, according to the source, who requested anonymity.
The virus can be sent to the suspect via e-mail — perhaps sent for the FBI by a trusted friend or relative. The FBI can also use common vulnerabilities to break into a suspect's computer and insert Magic Lantern, the source said.
Magic Lantern is one of a series of enhancements currently being developed for the FBI's Carnivore project, the source said, under the umbrella project name of Cyber Knight.
MENTIONED IN UNCLASSIFIED DOCUMENTS
The FBI released a series of unclassified documents relating to Carnivore last year in response to a Freedom of Information Act request filed by the Electronic Privacy Information Center. The documentation was heavily redacted -- most information was blacked out. They included a document describing the "Enhanced Carnivore Project Plan, which was almost completely redacted. According to the anonymous source, redacted portions of that memo mention Cyber Knight, which he described as a database that sorts and matches data gathered using various Carnivore-like methods from e-mail, chat rooms, instant messages and Internet phone calls. It also matches the files with the necessary encryption keys.