An Israeli software firm has discovered a flaw in Netscape and Mozilla software that allows code hidden in a Web page to read files from the user's PC. The bug is a more serious variant of one patched in Microsoft's Internet Explorer in February.
[PAGEBREAK] According to the report, verified by other developers, XMLHttpRequest doesn't properly check the security settings for some types of data requests in a Web page, allowing them, if properly disguised, to request data from the user's hard drive. The Internet Explorer bug required an attacker to know the name of a file on the user's PC in order to exploit that file, but the Mozilla bug also allows the contents of directories on the local drive to be listed.