The Cold War hasn’t ended. Instead it has been moved into cyber space. In its latest annual cyber security study, McAfee warned that the rise in international cyber spying will pose the single biggest security threat in 2008.

While past attacks were designed to destroy data, today’s attacks are increasingly designed to silently steal data for profit without doing noticeable damage that would alert a user to its presence.

Other major trends include an increasing threat to online services such as banking, and the emergence of a complex and sophisticated market for malware.

McAfee said that the governments and allied groups are using the Internet for cyber spying and cyber attacks and the targets include critical national infrastructure network systems such as electricity, air traffic control, financial markets and government computer networks.

"Cybercrime is now a global issue," said Jeff Green, senior vice president of McAfee Avert Labs and product development. "It has evolved significantly and is no longer just a threat to industry and individuals but increasingly to national security. We're seeing emerging threats from increasingly sophisticated groups attacking organizations around the world. Technology is only part of the solution, and over the next five years we

will start to see international governments take action."

McAffee also said that 120 countries are now using the Internet for Web espionage operations and many cyber attacks originate from China.

Attacks have progressed from initial curiosity probes to well-funded and well-organized operations for political, military, economic and technical espionage, McAfee added.

Also, ingenious cyber criminals have evolved “super-strength” threats that are harder and harder to detect and can be modified on the fly. And, emerging technologies like voice over IP and smartphones are fostering new threats like "vishing” and “phreaking.”

In response to the study issued by McAfee China has denied it is engaged in any cyber crime and said its networks too have been targeted.

"China has also been attacked by hackers of some countries, so the Chinese government attaches great importance to and participates in the international law enforcement cooperation in this area," Foreign Ministry spokesman Liu Jianchao said, according to Associated Press.