Pentagon issues 'spy coin' alert

PENTAGON (AP) - (WJRT) -- (01/11/07)-- The Pentagon is warning its American contractors of a new spy threat.

A government report says Canadian coins with tiny radio transmitters hidden inside were found planted on contractors with classified security clearances on at least three occasions. The incidents occurred between October 2005 and January of last year after the contractors traveled through Canada.

The report doesn't suggest who might be tracking the defense contractors or why. Other unanswered questions include how the Pentagon discovered the ruse, how the transmitters might function and what type of coin contained the them.

The Defense Security Service says the report has been "sanitized" and further details are secret. Canadian intelligence says it knows nothing about the coins.

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