Dangers of Sharing Music Files

(CBS)  Millions of people are now using what are called "peer-to-peer" networks.

Basically, you link your computer to other computers all across the country, mostly so you can swap music for free.

But here's the problem, "Early Show" Consumer Correspondent Susan Koeppen says as part of the broadcast's series, "Somebody's watching You": Identity thieves are using the same networks, and they're not interested in music: They're seeking access to your financial information.

Beth Pope learned that the hard way. When she put peer-to-peer software on her computer, she had one goal in mind: increasing her music library. "I thought I could get access to other people's music folders and they could have access to my music folders," she says, "and that was about it. I didn't think it went any further than that."

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That is, until she was contacted by the Secret Service -- with shocking news -- someone had stolen personal information from her computer -- using the very software she used to trade music.

"I thought I was pretty computer savvy," Pope says, "but I had no idea that, just by sharing one file on my computer, that people could get access to my entire computer."

Pope had been using the peer-to-peer software called Lime Wire. On any given day, Koeppen notes, 20 million people are using peer-to-peer networks such as Lime Wire, FrostWire and Shareaza, mostly to swap songs.

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But, stresses, Kathryn Warma, an assistant U.S. Attorney in Seattle, peer-to-peer users are "putting out a welcome mat, or even a neon sign on the Internet, (saying), 'There's a chump who lives here, come on in.' And they are inviting every lowlife around the world into your home."

Warma has prosecuted hackers charged with using peer-to-peer software to steal personal information. They can, she tells Koeppen, "get just about anything. You could be snug in your bed and some creep ... is pawing through your tax return, some creep ... is pulling up your credit report."

Warma says there are more than a billion file searches a day made by people using peer-to-peer networks, and many of those searches are being made by criminals. "There are conceivably legitimate reasons for having a file-sharing software," Warma observes. "Unfortunately, it's not the legitimate reasons that drive the volume in which it is used."

With the help of David Dunn, a member of the Secret Service Electronic Crimes Task Force, Koeppen decided to see what personal information she could find using a peer-to-peer network.

Thieves typically seek documents such as credit reports, tax returns, or the federal financial student aid application, Dunn says.

And sure enough, a financial aid document popped up during one of Koeppen's searches.

"Obviously," says Dunn, "we aren't going to download it, because it's someone's personal information. I'm sure that, whoever (this file sharer) is didn't want her (student aid application) confirmation number available online for somebody to download."

But, Koeppen adds, it's not just personal information at risk: Peer-to-peer networks have also been used to expose important internal documents from major companies, and confidential information from the federal government. Blue prints for the presidential helicopters were once spotted on a peer-to-peer file-sharing network, he says.

Congress is holding hearings on Capitol Hill this month, looking at the dangers of peer-to-peer networks.

Pope says she's done using peer to peer. "I've gotten all of that off my computer," she says. "I pay for music now. It's the best way to do it. There no way that I would ever do that again."

The trade group for file sharing software companies says they are working on better systems to prevent the misuse of the peer to peer networks.

Still, Koeppen urges that people, for instance, delete Lime Wire from their computers, or make sure they have the latest version, which should have updated security features.