According to the report, the British spy agency, GCHQ, uses a hacking program called Optical Nerve to spy on British citizens in their homes while they were having private moments via Yahoo's webcam chat service.

Apparently, several of the victims illegally spied on were in the nude, which should be seen as a shocking revelation of how far governments are willing to go in order to catch their man.

"We were not aware of nor would we condone this reported activity," Yahoo said.

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A new report has shown that its British counterpart spied on millions of Yahoo users through their webcams, something that is sure to cause some serious backlash against the British government.

The new report is part of the Edward Snowden leaks, released by the Guardian.

The Guardian reports that over 1.8 million Yahoo users were targeted in a six month period and that the Optical Nerve hacking program collected images and chat logs in bulk, even from users who are not on the GCHQ radar.

A large quantity of the captured images includes sexually explicit content, says the Guardian. it would appear that a surprising number of people use webcam conversations to show intimate parts of their body to the other person," according to a GCHQ document.

"The best images are ones where the person is facing the camera with their face upright." The GCHQ agency staffs were allowed to display "webcam images associated with similar Yahoo identifiers to your known target", the document reads, also it states “Bulk surveillance of Yahoo users was begun” as "Yahoo webcam is known to be used by GCHQ targets." Yahoo has reacted furiously and denied any prior knowledge of the webcam interception program, and said that it had no awareness of or involvement with the GCHQ collection, describing the activity as "a whole new level of violation of our users' privacy." And a GCHQ spokesman said in a statement, "It is a longstanding policy that we do not comment on intelligence matters.

Yahoo users on webcam should beware of doing sex-related things, as they are being watched.

Now, it has been revealed that the US National Security Agency (NSA) helped its British counterpart, the Government Communications Headquarters (GCHQ), to allegedly capture and store nude images and others from webcam chats of millions of unsuspecting Yahoo users, The Guardian reported.

Documents handed to the Guardian by the former NSA contractor Edward Snowden show that the GCHQ's worked with the US intelligence agency NSA on a joint project dubbed as ‘Optic Nerve’.

It reportedly captured one image every five minutes, which it did from around 1.8 million unique Yahoo accounts.