What are the security risks in running a Windows Service as “Local System”?

Question

I have written a .NET Windows service which runs as \"Local System\". Recently I read that, running as local system might expose system credential to hackers enabling them t

Answer 1

I think the main problem is that if someone will discover a security bug in your service that lets him access system resources and/or execute code - it access/execute with Local System rights (which are the same as built in Administrators). The question is - are you totaly sure your service is hacker proof?? :P