From the DEFCON 16 Badge Hacking Contest. This entry was created by the guys at University of Delaware's CVORG group (http://www.cvorg.ece.udel.edu/defcon-16). They modified the badge to leak information via the LEDs. Known as an "optical trojan" or "covert channel," the badge's LEDs are blinking at a very fast rate undetectable to the human eye and transmitting "HELLO DEFCON" in Morse Code. The optical transmission can be picked up with simple optical receiver circuitry connected to a PC.
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