Spyware History and Development
A little spyware history

Spyware has evolved into the cyber era as the most dangerous, damaging and menacing technological appliance in current history. It is no aggravation of statement that if you are linked to the Internet, there’s every chance of being affected by this nuisance. So, it is in good time we should possess a peripheral view about spyware.

The first recorded use of the term spyware occurred on October 16, 1995 (wikipedia) in a Usenet post that poked fun at Microsoft's business model. Spyware at first denoted hardware 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. 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 had 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. In an estimate based on customer-sent scan logs, Webroot Software, makers of Spy Sweeper, said that nine out of ten computers connected to the Internet are infected. Computers where Internet Explorer (IE) is the primary browser are particularly vulnerable to such attacks not only because IE is the most widely-used, but because its tight integration with Windows allows spyware access to crucial parts of the operating system.

Before Internet Explorer 7 was released, the browser would automatically display an installation window for any ActiveX component that a website wanted to install. The combination of user naiveté towards malware and the assumption by Internet Explorer that all ActiveX components are benign, led, in part, to the massive spread of spyware. Many spyware components would also make use of flaws in Javascript, Internet Explorer and Windows to install without user knowledge or permission.

The word “spyware" was an instant hit in the mass media and among the general mass and soon in the month of June, 2000 the first anti-spyware application OptOut was released by Steve Gibson. Gibson planned to market its OptOut for a very competitive price but they faced tough competition from Lavasoft, around the middle of 2000 with their version 1.0, as they offered their version of anti-spyware absolutely for free. Lavasoft’s application was more competent as a spyware removal component and already was performing multi-tasking applications. As a result Gibson had to abscond from the race leaving their OptOut with no more development. Nevertheless, OptOut could be termed as the pioneer of anti-spyware applications.

The registry contains code that allow software to be executed automatically when the operating system boots. Spyware often exploits this design to help it circumvent attempts at removal. The spyware typically will link itself from 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.

Spyware, virus and worm

Unlike viruses and worms, spyware does not usually self-replicate. Like many recent viruses, however, spyware — by design — exploits infected computers for commercial gain. Typical tactics furthering this goal include delivery of unsolicited pop-up advertisements; theft of personal information (including financial information such as credit card numbers); monitoring of Web-browsing activity for marketing purposes; or routing of HTTP requests to advertising sites.

Examples of Spyware

These common spyware programs illustrate the diversity of behaviors found in these attacks. Note that as with computer viruses, researchers give names to spyware programs which may not be used by their creators. Programs may be grouped into "families" based not on shared program code, but on common behaviors, or by "following the money" of apparent financial or business connections. For instance, a number of the spyware programs distributed by Claria are collectively known as "Gator". Likewise, programs which are frequently installed together may be described as parts of the same spyware package, even if they function separately.

• CoolWebSearch, a group of programs, takes advantage of Internet Explorer vulnerabilities. The package directs traffic to advertisements on Web sites including coolwebsearch.com. It displays pop-up ads, rewrites search engine results, and alters the infected computer's hosts file to direct DNS lookups to these sites.

• Internet Optimizer, also known as DyFuCa, redirects Internet Explorer error pages to advertising. When users follow a broken link or enter an erroneous URL, they see a page of advertisements. However, because password-protected Web sites (HTTP Basic authentication) use the same mechanism as HTTP errors, Internet Optimizer makes it impossible for the user to access password-protected sites.

• Zango (formerly 180 Solutions) transmits detailed information to advertisers about the Web sites which users visit. It also alters HTTP requests for affiliate advertisements linked from a Web site, so that the advertisements make unearned profit for the 180 Solutions company. It opens pop-up ads that cover over the Web sites of competing companies.

• HuntBar, aka WinTools or Adware.Websearch, was installed by an ActiveX drive-by download at affiliate Web sites, or by advertisements displayed by other spyware programs — an example of how spyware can install more spyware. These programs add toolbars to IE, track aggregate browsing behavior, redirect affiliate references, and display advertisements.
• Zlob trojan, or just Zlob, Downloads itself to your computer via an ActiveX codec and reports information back to Control Server. Some information can be as your search history, the Websites you visited, and even Key Strokes.
   

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