According to MSNBC, the FBI has abandoned the controversial Carnivore wiretap software. Carnivore was designed to read e-mails and other online communications among suspected criminals, terrorists and spies. The FBI named the VoIP monitoring element of its Carnivore surveillance tool Dragon Net. There is no indication in the MSNBC story if Dragon Net was also killed, but one would assume this is the case since it fell under the Carnivore umbrella.
The FBI hasn't given up on Internet eavesdropping. Instead, according to MSNBC, "the FBI is reported to have switched to unspecified commercial software to eavesdrop on computer traffic during such investigations and has increasingly asked Internet providers to conduct wiretaps on targeted customers on the government's behalf, reimbursing companies for their costs."
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MSNBC - FBI abandons Carnivore wiretap software