What is Spyware?
Equal parts security threat, privacy threat, and nuisance, this emerging class of software has risen quickly from obscurity to near ubiquity. Recent research underscores the point: A November 2004 study by analyst firm IDC estimates that 67 percent of consumer PCs are infected with some form of spyware1. The seemingly phantom nature of the problem combined with its increasingly hazardous impact threatens to undermine trust in computing as significantly as better known challenges such as viruses and worms.
The effects of spyware on the individual PC user range from minor annoyances to serious impacts on PC performance, security, and privacy. More often than not, spyware-related issues reported by users come in the form of one or more of these common symptoms:
• Unauthorized pop-up advertisements, even when not browsing the Web
• A change to the browser home page or default search engine without user consent, which often resists attempts to change it back
• A new and unwanted toolbar on the browser, which often resists attempts to remove it
• A sudden and dramatic slowdown in PC performance
• Increased crashing of operating systems, Web browsers, and other common applications
Spyware and other potentially unwanted software refers to a wide range of programs that perform actions such as displaying advertising, tracking Web sites visited, or changing the configuration of a PC. Though these are the most common forms of spyware, attention is often focused on less common but more potentially harmful forms, such as programs that record keystrokes, collect personal information and send it to a third party, or remotely control a PC’s resources. The key in all cases is whether users understand what the software will do and have agreed to install the software on their PCs.
Source: http://www.microsoft.com/athome/security/spyware/strategy.mspx