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Spyware industry 'raking in billions'

Dan Ilet ZDNet.co.uk

Published: 04 May 2005 12:15 BST

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Spyware writers are generating $2bn (£1bn) of revenue annually after capturing 25 percent of the online advertising market, an anti-spyware vendor claimed this week.

Research from Webroot found that spyware — programs that are secretly installed on a user's PC and cause advertising pop-ups and home-page hijacking — was found on 88 percent of consumer computers and 87 percent of business computers scanned by Webroot between January and April of this year.

"Our research shows that some form of spyware, adware or potentially unwanted software can be found on 87 percent of corporate PCs," said Richard Stiennon, Webroot’s vice-president of threat research. "This figure is disconcerting from a security perspective and also from an IT support perspective, as spyware can often slow down the performance of an entire network."

However, security experts have questioned the validity of the research as Webroot defines "spyware" as both unwanted programs and cookies. Cookies are files used by legitimate Web sites to gather information about a user's activity on that site and are present on most computers that run a Web browser. Many argue that cookies are not dangerous.

"A cookie on its own won't do it, but combined with spyware it is [dangerous]," said Clive Longbottom, an analyst at Quocirca. "This is an area where you have to be careful as the financial institutions, for example, use cookies. But we would advise companies cleanse desktops, whether they use free or supported tools to do so."

Longbottom also doubted that spyware was generating $2bn a year.

"For companies trying to get marketing through backdoors, I can't see that there's $2bn available for this," he said. "It seems a hell of a lot of money to me."

Webroot said it took its research from online audits. It found that a program called "CoolWebSearch", which avoids detection by many anti-spyware tools, was the most widespread "threat" it found.

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