Skype encryption for secure calling had been broken sometime back, and now Efim Bushmanov a freelance researcher, has been able to reverse engineer the protocol right to its roots.
Skype is the undisputed leader in VoIP services both in quality and security. For years, hackers had been working hard to crack the strong Encryption Skype Protocol uses to Obfuscate its voice packets.
Encryption was so good that almost no one has been able to reverse engineer it out of the numerous Skype binaries.
The developer claims that most of hard things have already been done for 1.x/3.x/4.x versions of skype arithmetic voice compression. The source code is now available along with the binaries. This is a working code for “send message to skype”. However, it is based on old skype 1.4 version protocol, which no longer compatible with the server.
If you look carefully at the source code, you will observe that it uses strong AES and RSA encryption with public key infrastructure. You can also download it via torrent.
Checkout the discussions at hackernews.