At DEFCON, Tony Kapela and Alex Pilosov demonstrated a drastic weakness in the Internet's infrastructure that had long been rumored, but wasn't believed practical. They showed how to hijack BGP (the border gateway protocol) in order to eavesdrop on Net traffic in a way that wouldn't be simple to detect. Quoting: "'It's at least as big an issue as the DNS issue, if not bigger,' said Peiter 'Mudge' Zatko, noted computer security expert and former member of the L0pht hacking group, who testified to Congress in 1998 that he could bring down the internet in 30 minutes using a similar BGP attack, and disclosed privately to government agents how BGP could also be exploited to eavesdrop. '

I went around screaming my head about this about ten or twelve years ago... We described this to intelligence agencies and to the National Security Council, in detail.' The man-in-the-middle attack exploits BGP to fool routers into re-directing data to an eavesdropper's network."

Here's the PDF of Kapela and Pilosov's presentation.