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Spyware

Malware that collects and transmits user information without their knowledge

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Spyware is frequently associated with advertising and involves many of the same issues. Because these behaviors are so common, and can have non-harmful uses, providing a precise definition of spyware is a difficult task.

History

As personal computers and broadband connections became more common, the use of the internet for e-commerce transactions rose. Early retailers included book dealer Amazon.com and CD retailer CDNOW.com, which both were founded in 1994. As competition over customers intensified, some e-commerce companies turned to questionable methods to entice customers into completing transactions with them.

The first recorded use of the term spyware occurred on October 16, 1995, in a Usenet post that poked fun at Microsoft's business model. Spyware at first denoted software meant for espionage purposes. However, in early 2000 the founder of Zone Labs, Gregor Freund, used the term in a press release for the ZoneAlarm Personal Firewall.

In early 2000, Steve Gibson formulated the first description of spyware after realizing software that stole his personal information had been installed on his computer: "Spyware is any software which employs a user's Internet connection in the background (the so-called "backchannel") without their knowledge or explicit permission."

Later in 2000, a parent using ZoneAlarm was alerted to the fact that Reader Rabbit, educational software marketed to children by the Mattel toy company, was surreptitiously sending data back to Mattel. Since then, "spyware" has taken on its present sense.

According to a 2005 study by AOL and the National Cyber-Security Alliance, 61 percent of surveyed users' computers were infected with some form of spyware. 92 percent of surveyed users with spyware reported that they did not know of its presence, and 91 percent reported that they had not given permission for the installation of the spyware. As of 2006, spyware has become one of the preeminent security threats to computer systems running Microsoft Windows operating systems. Computers on which Internet Explorer (IE) was the primary browser are particularly vulnerable to such attacks, not only because IE was the most widely used, but also because its tight integration with Windows allows spyware access to crucial parts of the operating system.

Before Internet Explorer 6 SP2 was released as part of Windows XP Service Pack 2, the browser would automatically display an installation window for any ActiveX component that a website wanted to install. The combination of user ignorance about these changes, and the assumption by Internet Explorer that all ActiveX components are benign, helped to spread spyware significantly. Many spyware components would also make use of exploits in JavaScript, Internet Explorer and Windows to install without user knowledge or permission.

The Windows Registry contains multiple sections where modification of key values allows software to be executed automatically when the operating system boots. Spyware can exploit this design to circumvent attempts at removal. The spyware typically links itself to each location in the registry that allows execution. Once running, the spyware will periodically check if any of these links are removed. If so, they will be automatically restored. This ensures that the spyware will execute when the operating system is booted, even if some (or most) of the registry links are removed.

Targeted advertisement

In the search for more effective advertising strategies, companies soon discovered the potential in ads that were targeted towards user interests. Once targeted advertising began to appear online, advertisers began to develop software that became known as spyware that collected users' personal interests through their browsing habits. Spyware brought along reduced system performance and security. The information gathered by spyware was used for constructing user profiles detailing what users could be persuaded to buy. The introduction of online advertisements opened up a new way of funding software development by having the software display advertisements to its users; software developers could offer their software "free of charge", since they were paid by the advertising agency. However, there is a distinction between "free of charge" and a "free gift", differences arising in the fact that a free gift is given without any expectations of future compensation, while something provided free of charge expects something in return. When downloading software described as "free of charge", users had no reason to suspect that it would report their Internet usage so that presented advertisements could be targeted towards their interests.

Problems arose due to users not being informed about neither the occurrence nor the extent of such monitoring, and were not given a chance to decide on whether to participate or not. As advertisements became targeted, the borders between adware and spyware started to dissolve, it started to both monitor users and deliver targeted ads.

Arms-race between spyware vendors

As the chase for faster financial gains intensified, several competing advertisers turned to more nefarious methods in an attempt to stay ahead of their competitors. As a result, this created a gray area between conventional ads that people chose to see, such as ads from subscription services, ads pushed on users through "pop-ups" and downloaded ads displayed in a program itself. This practice pushed online advertising closer to the dark side of spam and other types of invasive, privacy compromising advertising. During this development, users experienced infections from unsolicited software that crashed their computers by accident, changed application settings, harvested personal information, and deteriorated their computer experience. Over time, these problems led to the introduction of countermeasures in the form of anti-spyware tools.

Anti-spyware has become a new area of online vending with fierce competition. These tools purported to clean computers from spyware, adware, and any other type of shady software located in that same gray area. This type of software can lead to false positives as some types of legitimate software came to be branded by some users as "Spyware" (i.e. Spybot: Search & Destroy identifies the Scan Spyware program as a Spybot.) These tools were designed similarly to anti-malware tools, such as antivirus software. Anti-spyware tools identify programs using signatures (semantics, program code, or other identifying attributes). The process only works on known programs, which can lead to the false positives mentioned earlier and leave previously unknown spyware undetected. To further aggravate the situation, some shady companies distributed fake anti-spyware tools in their search for a larger piece of the online advertising market. These fake tools claimed to remove spyware, but instead installed their own share of adware and spyware on unsuspecting users' computers. Sometimes, this software would also remove adware and spyware from competing vendors.

New spyware programs are constantly being released in what seems to be a never-ending stream, although the increase has leveled out somewhat over the last few years. According to developers of anti-spyware programs, the fight against spyware is more complicated than the fight against viruses, trojan horses, and worms. There is still no consensus on a definition or classification system of spyware, which negatively affects the accuracy of anti-spyware tools resulting in some spyware programs being able to remain undetected on users' computers.

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