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Spyware has become a billion-dollar industry

Publish date: 11 May 2005
Issue Number: 1080
Diary: Legalbrief eLaw
Category: Cybercrime

According to the State of Spyware report, issued by Webroot, the number of computers infected with spyware applications remains relatively high despite growing awareness of the epidemic.

The research found that spyware had created a billion-dollar industry that continues to plague both consumers and businesses, reports CNET News. According to the research, during the first quarter of 2005, 88% of consumer machines and 87% of corporate machines harboured some kind of spyware programs. Despite the high number of computer infected by spyware, Webroot noted that the infection rate had actually diminished since 2004, when the company found an average of 28 spyware programs on each PC it scanned during the first quarter. The report notes that spyware infection has adversely affected the growth of e-commerce by eroding consumer trust in online security. Full CNET News report

An investigation into the spyware problem has shown that large companies are often inadvertently funding the proliferation of spyware and adware. According to the Los Angeles Times report, large corporates such as Mercedes Benz and online travel agency Travelocity.com have unknowingly been advertising their wares through unscrupulous adware programs. Both Mercedes-Benz USA and Travelocity said their pitches were placed in violation of company policies. The report notes that unintended placement is not unusual on the decentralised Internet, as the advertising merchants are often several steps removed from their own advertisements. Some security experts estimate that spyware and its cousin, adware, generate $500m to $2bn a year in revenue for middlemen. Full Los Angeles Times report

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