Different Types of Spyware

December 14, 2008 by Spyware Guru Nik 

Routes of infection

Malicious websites attempt to install spyware on readers’ computers.

Spyware does not directly spread in the manner of a computer virus or worm: generally, an infected system does not attempt to transmit the infection to other computers. Instead, spyware gets on a system through deception of the user or through exploitation of software vulnerabilities.

Most spyware is installed without users’ knowledge.  Since they tend not to install software if they know that it will disrupt their working environment and compromise their privacy, spyware deceives users, either by piggybacking on a piece of desirable software such as Kazaa, or by tricking them into installing it (the Trojan horse method).  Some “rogue” anti-spyware programs masquerade as security software, while being spyware themselves.

The distributor of spyware usually presents the program as a useful utility—for instance as a “Web accelerator” or as a helpful software agent. Users download and install the software without immediately suspecting that it could cause harm. For example, Bonzi Buddy, a program bundled with spyware and targeted at children, claims that:

He will explore the Internet with you as your very own friend and sidekick! He can talk, walk, joke, browse, search, e-mail, and download like no other friend you’ve ever had! He even has the ability to compare prices on the products you love and help you save money! Best of all, he’s FREE!

Spyware can also come bundled with shareware or other downloadable software, as well as music CDs.  The user downloads a program and installs it, and the installer additionally installs the spyware. Although the desirable software itself may do no harm, the bundled spyware does. In some cases, spyware authors have paid shareware authors to bundle spyware with their software.  In other cases, spyware authors have repackaged desirable freeware with installers that add spyware.

A third way of distributing spyware involves tricking users by manipulating security features designed to prevent unwanted installations. Internet Explorer prevents websites from initiating an unwanted download. Instead, it requires a user action, such as clicking on a link. However, links can prove deceptive: for instance, a pop-up ad may appear like a standard Windows dialog box.  The box contains a message such as “Would you like to optimize your Internet access?” with links which look like buttons reading Yes and No. No matter which “button” the user presses, a download starts, placing the spyware on the user’s system. Later versions of Internet Explorer offer fewer avenues for this attack.

Some spyware authors infect a system through security holes in the Web browser or in other software. When the user navigates to a Web page controlled by the spyware author, the page contains code which attacks the browser and forces the download and installation of spyware.  The spyware author would also have some extensive knowledge of commercially-available anti-virus and firewall software.  This has become known as a “drive-by download”, which leaves the user a hapless bystander to the attack.  Common browser exploits target security vulnerabilities in Internet Explorer and in the Sun Microsystems Java runtime.

The installation of spyware frequently involves Internet Explorer. Its popularity and history of security issues have made it the most frequent target.  Its deep integration with the Windows environment and scriptability make it an obvious point of attack into Windows. Internet Explorer also serves as a point of attachment for spyware in the form of Browser Helper Objects, which modify the browser’s behaviour to add toolbars or to redirect traffic.

In a few cases, a worm or virus has delivered a spyware payload. Some attackers used the Spybot worm to install spyware that put pornographic pop-ups on the infected system’s screen. By directing traffic to ads set up to channel funds to the spyware authors, they profit personally.

Effects and behaviors

A spyware program is rarely alone on a computer: an affected machine can rapidly be infected by many other components. Users frequently notice unwanted behavior and degradation of system performance. A spyware infestation can create significant unwanted CPU activity, disk usage, and network traffic, all of which slow the computer down.  Stability issues, such as application, system not turning on, and system-wide crashes, are also common.  Spyware, which interferes with networking software commonly causes difficulty connecting to the Internet.

In some infections, the spyware is not even evident. Users assume in those situations that the issues relate to hardware, Windows installation problems, or a virus.  Some owners of badly infected systems resort to contacting technical support experts, or even buying a new computer because the existing system “has become too slow”.  Badly infected systems may require a clean reinstallation of all their software in order to return to full functionality.

Only rarely does a single piece of software render a computer unusable. Rather, a computer is likely to have multiple infections. As a 2004 AOL study noted, if a computer has any spyware at all, it typically has dozens of different pieces installed.  The cumulative effect, and the interactions between spyware components, causes the symptoms commonly reported by users: a computer, which slows to a crawl, overwhelmed by the many parasitic processes running on it. Moreover, some types of spyware disable software firewalls and anti-virus software, and/or reduce browser security settings, thus opening the system to further opportunistic infections, much like an immune deficiency disease.  Some spywares disable or even remove competing spyware programs, on the grounds that more spyware-related annoyances make it even more likely that users will take action to remove the programs.  One spyware maker, Avenue Media, even sued a competitor, Direct Revenue, over this; the two later settled with an agreement not to disable each others’ products.

Some other types of spyware (for example, Targetsoft) modify system files so they will be harder to remove. Targetsoft modifies the “Winsock” Windows Sockets files. The deletion of the spyware-infected file “inetadpt.dll” will interrupt normal networking usage. Unlike users of many other operating systems, a typical Windows user has administrative privileges, mostly for convenience. Because of this, any program the user runs (intentionally or not) has unrestricted access to the system too. Spyware, along with other threats, has led some Windows users to move to other platforms such as Linux or Apple Macintosh, which are significantly less susceptible to malware.  This is because these programs are not granted unrestricted access to the operating system by default.  As with other operating systems, Windows users too are able to follow the principle of least privilege and use non-administrator least user access accounts, or to reduce the privileges of specific vulnerable Internet-facing proceses such as Internet Explorer (through the use of tools such as DropMyRights). However as this is not a default configuration, few users do this.

Advertisements

Many spyware programs display advertisements. Some programs simply display pop-up ads on a regular basis; for instance, one every several minutes, or one when the user opens a new browser window. Others display ads in response to specific sites that the user visits. Spyware operators present this feature as desirable to advertisers, who may buy ad placement in pop-ups displayed when the user visits a particular site. It is also one of the purposes for which spyware programs gather information on user behavior.

Many users complain about irritating or offensive advertisements as well. As with many banner ads, many spyware advertisements use animation or flickering banners which can be visually distracting and annoying to users. Pop-up ads for pornography often display indiscriminately. Links to these sites may be added to the browser window, history or search function. When children are the users, this could possibly violate anti-pornography laws in some jurisdictions.

A number of spyware programs break the boundaries of illegality; variations of “Zlob.Trojan” and “Trojan-Downloader.Win32.INService” have been known to show undesirable child pornography, key gens, cracks and illegal software pop-up ads which violate child pornography and copyright laws.

A further issue in the case of some spyware programs has to do with the replacement of banner ads on viewed web sites. Spyware that acts as a web proxy or a Browser Helper Object can replace references to a site’s own advertisements (which fund the site) with advertisements that instead fund the spyware operator. This cuts into the margins of advertising-funded Web sites.

“Stealware” and affiliate fraud

A few spyware vendors, notably 180 Solutions, have written what the New York Times has dubbed “stealware”, and what spyware researcher Ben Edelman terms affiliate fraud, a form of click fraud. Stealware diverts the payment of affiliate marketing revenues from the legitimate affiliate to the spyware vendor.

Spyware which attacks affiliate networks places the spyware operator’s affiliate tag on the user’s activity—replacing any other tag, if there is one. The spyware operator is the only party that gains from this. The user has their choices thwarted, a legitimate affiliate loses revenue, networks’ reputations are injured, and vendors are harmed by having to pay out affiliate revenues to an “affiliate” who is not party to a contract.

Affiliate fraud is a violation of the terms of service of most affiliate marketing networks. As a result, spyware operators such as 180 Solutions have been terminated from affiliate networks including LinkShare and ShareSale.

Identity theft and fraud

In one case, spyware has been closely associated with identity theft.  In August 2005, researchers from security software firm Sunbelt Software believed that the makers of the common CoolWebSearch spyware had used it to transmit “chat sessions, user names, passwords, bank information, etc.”, but it turned out that “it actually (was) its own sophisticated criminal little trojan that’s independent of CWS.” This case is currently under investigation by the FBI.

The Federal Trade Commission estimates that 27.3 million Americans have been victims of identity theft, and that financial losses from identity theft totaled nearly $48 billion for businesses and financial institutions and at least $5 billion in out-of-pocket expenses for individuals.

Spyware-makers may commit wire fraud with dialer program spyware. These can reset a modem to dial up a premium-rate telephone number instead of the usual ISP. Connecting to these suspicious numbers involves long-distance or overseas charges which invariably result in high call costs. Dialers are ineffective on computers that do not have a modem, or are not connected to a telephone line.

Digital rights management

Some copy-protection technologies have borrowed from spyware. In 2005, Sony BMG Music Entertainment was found to be using rootkits in its XCP digital rights management technology Like spyware, not only was it difficult to detect and uninstall, it was so poorly written that most efforts to remove it could have rendered computers unable to function. Texas Attorney General Greg Abbott filed suit, and three separate class-action suits were filed. Sony BMG later provided a workaround on its website to help users remove it.

Beginning in April 25, 2006, Microsoft’s Windows Genuine Advantage Notifications application installed on most Windows PCs as a “critical security update”. While the main purpose of this deliberately non-uninstallable application is making sure the copy of Windows on the machine was lawfully purchased and installed, it also installs software that has been accused of “phoning home” on a daily basis, like spyware.  It can be removed with the RemoveWGA tool.

Personal relationships

Spyware has been used to surreptitiously monitor electronic activities of partners in intimate relationships, generally to uncover evidence of infidelity. At least one software package, Loverspy, was specifically marketed for this purpose. Depending on local laws regarding communal/marital property, observing a partner’s online activity without their consent may be illegal; the author of Loverspy and several users of the product were indicted in California in 2005 on charges of wiretapping and various computer crimes.

Spyware and cookies

Anti-spyware programs often report Web advertisers’ HTTP cookies, the small text files that track browsing activity, as spyware. While they are not always inherently malicious, many users object to third parties using space on their personal computers for their business purposes, and many anti-spyware programs offer to remove them.

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.

Movieland, also known as Moviepass.tv and Popcorn.net, is a movie download service that has been the subject of thousands of complaints to the Federal Trade Commission (FTC), the Washington State Attorney General’s Office, the Better Business Bureau, and other agencies. Consumers complained they were held hostage by a cycle of oversized pop-up windows demanding payment of at least $29.95, claiming that they had signed up for a three-day free trial but had not cancelled before the trial period was over, and were thus obligated to pay.[31][32] The FTC filed a complaint, since settled, against Movieland and eleven other defendants charging them with having “engaged in a nationwide scheme to use deception and coercion to extract payments from consumers.”

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. More recently, Zlob has been know to hijack Routers set to defaults.

Spyware Gurus are committed to keeping you up to date on the latest threats and we will be updating this list regularly.

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