Spoofing URLs With Unicode

Embedded Geek writes: "Scientific American has an interesting article about how a pair of students at the Technion-Israel Institute of Technology registered "microsoft.com" with Verisign, using the Russian Cyrillic letters "c" and "o". Even though it is a completely different domain, the two display identically (the article uses the term "homograph"). The work was done for a paper in the Communications of the ACM (the paper itself is not online). The article characterizes attacks using this spoof as "scary, if not entirely probable," assuming that a hacker would have to first take over a page at another site. I disagree: sending out a mail message with the URL waiting to be clicked ("Bill Gates will send you ten dollars!") is just one alternate technique. While security problems with Unicode have been noted here before, this might be a new twist."