This is really quite disturbing. Could that nasty piece of Spyware known as as CoolWebSearch be responsible for some identity theft? While it might have outright, it does look awfully suspicious.

A major identity theft ring has been discovered that affects up to 50 banks, according to Sunbelt Software, the security company that says it uncovered the operation.

The operation, which is being investigated by the FBI, is gathering personal data from “thousands of machines” using keystroke-logging software, Sunbelt said Monday. The data collected includes credit card details, Social Security numbers, usernames, passwords, instant-messaging chat sessions and search terms. Some of that data is then saved in a file hosted on a U.S.-based server that has an offshore-registered domain, according to Sunbelt.

In the two days that Sunbelt has been monitoring the file, the company has seen confidential financial details of customers of up to 50 international banks, said Eric Sites, vice president of research and development at the Clearwater, Fla.-based security software maker. [Read the rest]