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Vol. 1 issue #112 Jun 24, 2004                  


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The Ten Truth's About Spyware
© 2004 By  Wayne Porter


No one should be too paranoid, but an informed user is a safe user. Spyware has recently begun cascading into the computer market at an astonishing rate. Surprisingly there are a lot of misconceptions about what spyware really is and how dangerous it can be.

Fact #1: Spyware and Adware are fundamentally different
This is important and often made confusing by the media and privacy advocates. Many people have the common misconception that spy software is made by advertisers to profile their shopping and surfing habits. This is a false and potentially dangerous assumption.

This misconception probably stems from the fall of two companies- Radiate and Conducent. Both of these companies attempted to sell banner space inside of freeware applications and to share this revenue with software authors in exchange for letting them distribute and selling space inside the freeware. This seemed to be a fair deal but what they didn't disclose to software authors and didn't tell consumers is that they were secretly profiling and logging surfing habits and sending this information back to their servers for analysis.


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Conducent and Radiate are no longer functioning, or at least they don't seem to be, but they left the legacy of adware paranoia with them. Adware may have spyware-like features, it may profile shopping habits, it is usually annoying, has the potential to be a security threat but it is nowhere near the security threat that real spyware can be. In short most Adware is not trying to capture your sŽcret chats, e-mails or passwŲrds. It usually is trying to entice you to buy something by showing ads, throwing out pop-up windows, profiling your surfing habits or gathering broad and general information about you.

Fact #2: Spy software creates dangerous security holes-
The latest "rage" among spyware vendors is the ability to let the spy remotely connect to the target's computers. We have identified several spyware programs opening a default port on the system and using a hard-coded or default, easy to guess or easy to brute force password. We have analyzed and carried out simulated attacks in this scenario. Hackers can use a simple port scanning tool to scan entire networks and easily penetrate affected machines.

People who have certain remote spyware programs installed on their machines are literally sitting ducks. Ironically, in the case of shared-machine spousal spying, the spy has actually opened themselves up to severe security threats because they operate on the same machine as the victim. The very same spyware that was supposed to protect their children by monitoring their activity is leaving them vulnerable to outside attacks.

Fact #3: Spyware is often illegal-
The use of Spyware or key recorders is illegal in some countries. If you are thinking about spying on people's computers then think again. It may carry stiff lŽgal penalties, up to and including prison time. In the U.S. installing a keylogger or spyware on someone's machine without their permission carries severe lŽgal penalties.


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Unfortunately there are virtually no laws currently restricting an employer from monitoring computers in the workplace for citizens of the United States. The good news is there is pending legislation to tighten these rules focusing on requiring notification of employees if their computer activity is being monitored. As of today this disclosure is not required.

Recently The Utah state legislature passed a bill, the Utah Spyware Control Act, outlawing certain activities in which most spyware engages. This includes, without first seeking permission from the owner of the computer, reporting online behavior, sending information about a user to third parties and creating pop-up advertisements based on the context of a web site a person is visiting. Currently this bill is being challenged by WhenU, a large adware vendor, on the grounds of limiting frŽe speech.

Fact #4: Spyware is common-
We know what you might be thinking; spy software seems rather "James Bondish" and beyond the reach of average users. This is not so. It is mass-marketed, cheap and very easy to acquire. You can find spyware for sale through Internet auctions, via e-mails (often sp@m), and all over the Web. You can even get spyware for frŽe if you know where to look.

Fact #5: Spyware is easy to install-
There are no special technical skills needed to install these programs. A teenager can do it and according to reports received by ourselves and other anti-spyware vendors they sometimes do. Spy software companies have made it very easy for just about anyone to start spying. We have documented cases of children installing spyware on their parent's machines to circumvent parental control software.


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Fact #6: Spyware may be sold under legitÔmate pretenses-
Many spy programs are marketed as "child monitoring systems" when in fact they are bought by employers, spouses, and other individuals for the sole purpose of gathering system and personal information without a user's consent. Because of this "legitimacy" these programs are often missed by anti-virus software designed to target viruses and trojan horses. Let's be realistic, spy software makers know exactly why people are really buying these programs.

We believe parents have a right to monitor there children but if a system is monitored it should be made clear this software is in place and the software should give the user adequate warning while it is in operation. The same holds true for employers and employees.

Fact #7: Spies intentionally 'misuse' monitoring software-
Established spy software companies usually ask purchasers to agree through a EULA (End User License Agreement) not to monitor users without their knowledge and consent. You guessed it- most spies have absolutely no intention of letting users know they are under surveillance.

Fact #8: Spyware software can be detected-
Spy software makers will go to great lengths to convince users they are 'untraceable' or they cannot be sniffed out by counter-surveillance probes. While spyware makers often use very sophisticated counter-detection and stealth technologies the vast majority of them can be scanned against and removed. If it is being sold on the commercial market- it can be targeted.

Fact #9: Some commercial spy programs are repurposed 'Trojan horses'-
This is sad but shockingly true. Some spyware vendors have gone as far as to repurpose old Trojan horse programs found on technical minded boards and are selling them as new spy technology. (A Trojan horse is a malicious, security-breaking program disguised as something benign.)

Fact#10: Deleting history and computer use logs does nothing against true spyware-
While erasing usage history is useful to protect your privacy this type of protection is useless if your activity is being logged or snapshots are being taken of your computer use. Deleting history, files, cache and cookies cannot and will not protect you against the prying eyes of active spies on your machine.

The safest way to remain frŽe from spyware is to use one or more anti-spy programs that actively scan your system for intrusion and utilities that help inoculate your system from penetration. Good anti-spy programs will use a variety of methods for detection including registry scanning, md5 signatures, digital fingerprints, filesize, CLSID, windows titles and other traces that spyware leaves on your machine.

Even with anti-spy software programs active, do not develop a false sense of security. The battle to contain these programs rages on daily basis with some rogue programs creating over two-hundrend variants in a single day! One lapse in security can lead to unwanted infection, so above all- use common sense. Don't download files from sites you don't know or trust, don't use P2P file sharing software, do not open e-mail attachments and be sure you have good anti-virus and firewall software running at all times.


Wayne Porter is the Co-Founder of SpywareGuide.com a leading online database of spyware and adware information. Mr. Porter also serves as CEO of Xblock Software the creators of the popular X-Cleaner and RegBlock personal privacy products.
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