What is the difference between spyware and adware?
Often misunderstood and grouped together with other more nefarious spyware and malware, adware has earned a bad rap through association. However, adware and spyware are not the same.
Adware refers to a group of software applications which deliver ads straight to personal computers and are often bundled with legitimate software. For example, many shareware writers offer free 'sponsored' versions of their software as an alternative to purchasing a license. Users are informed in advance that the software will display ads in exchange for using the software for free. If the user no longer wants to view these ads, they can pay for the shareware license and all ads are subsequently removed. This type of shareware funding has become vital for some software companies, offering a steady revenue stream in an otherwise overly competitive market.
Originally designed as a method to reach a growing number of internet users during the 1990's, adware was pioneered by websites such as Hotwire, who sold advertising space to some of the biggest names in business. However, it wasn't long before this technology was crossing the boundaries of user privacy.
In 1994, Netscape implemented a new protocol called cookies. This enabled websites to store small bits of information about users on their computers. Cookies also offered the opportunity to store a user's surfing habits and private information for legitimate websites to use on future visits.
The ability to track internet users as they surfed meant that advertising could be customised to each individual user's interests and purchasing habits, thereby enabling companies to display more relevant products. However, most of these programs were gathering information without the user's permission and often without the user's knowledge. Since the software ran silently in the background of a computer, 'spying', they were soon dubbed 'spyware'.
Spyware is classified as all programs that are designed to 'snoop' a user's machine and everything a user does without their knowledge. These small programs were originally created to record all key strokes, take screen grabs and offer real-time monitoring of all programs and files as they are being used. One of the more popular uses was for spouses who wanted to know what their partners were doing while on the computer.
Today spyware programs harvest private information, enable remote users to access infected machines, send report logs to unknown third parties, steal user names and passwords, breach security features on infected computers and are used for many other illegal online activities.
Though spyware was never designed to harm infected machines, it has caused serious problems for computer systems and networks and has been attributed to overall business loss as well as affecting productivity.
In contrast to adware, most spyware is installed onto computers through some type of deception. Whether it is through a pop-up ad claiming to protect your machine from security threats, through spam email or loaded as an accompaniment to your instant messaging service or toolbar - most users have no prior knowledge that they have agreed to host these programs. Many users are also unaware of how much information is being shared about their personal details and their online habits.
In an effort to minimise privacy invasion being perpetrated through these programs, it soon became necessary for legitimate businesses to explicitly mention the use of spyware within their end user license agreements (EULA). Companies were required to state what information they were gathering and how it would be used. It also became necessary to give users the ability to 'opt-out' of these data mining programs.
These measures did not prevent some companies from integrating the spyware into their applications, thereby rendering the programs useless if the spyware was removed. Another problem emerged with the EULA statements because most users never read EULAs that accompany software. Instead they assume that it only pertains to how the program can be used without realising it also states how the program provider will use their personal information and who it might be distributed to.
Additionally, these legal measures could not address the growing number of online opportunists and hackers who use spyware for illegal purposes. Today, a significant number of spyware applications in circulation are bundled with trojans and other malware. The harvested data is bought and sold through underground networks, being used for identity theft and credit card fraud.