Spyware:

 

A Risk to Computer Security

 

 

        

Gina Doerr

3 May 2002

Information Systems and Security

IFSM 430

Mr. David Wills

 

 

 

Executive Summary

Topics researched in this report include an explanation of what spyware is, examples of different software containing spyware, how Congress is planning to put a stop to it, and actions a computer user can do to protect themselves from spyware.

Explanation of Spyware

How Congress is planning to stop Spyware

Types of Spyware

How users can protect a computer

Questions for the Final:

1.      What is spyware? A Trojan horse program hidden in adware that monitors Internet and other computer usage.

2.      What is the name of the act presented to Congress, but has yet to become a law?

The Spyware Control and Privacy Protect Act

 

 

 

Ever have that feeling when someone is watching you that causes you to look over your shoulder or to look around the room until you see who is staring at you? When you are on a computer, you might still get that same feeling like you are being watched, only this time you cannot see who is doing the watching. Every time you connect to the Internet, every form you fill out, every keyword search you enter, and websites that you visit are all open to the possibility of being monitor by software you probably did not even know is installed on your computer. The potential risk of security that spyware creates is a cause for concern to anybody utilizing a computer. Topics researched in this report include an explanation of what spyware is, examples of different software containing spyware, how Congress plans stop it, and actions a computer user can do to protect themselves from spyware.

           

Explanation of Spyware

            To explain what spyware is and how it works, one first has to understand the history behind it. Freeware and shareware are popular ways to get software from the Internet without paying for it. The reason why it is possible for these types of software to be distributed for free is because it is paid for by companies that place ads into the program, earning it the name of adware (Tom-Cat, 2002). Adware is any software application in which advertising banners are displayed while the program is running     (Tech Target, 2001). Most adware programmers provide a free version of the software, the one with the ads, or a registered version where the ads are taken out (Simply…2002).  However, the tradeoff for downloading freeware (or adware) is that many now contain a Trojan horse hidden within the software. There is a code that tracks a user's personal information and passes it on to third parties. The worst part is that because the user does not even know that this activity is occurring, it is occurring without the proper authorization from the user (Tech Target, 2001). This Trojan horse has been named spyware; still other nicknames are snoopware or malware.

            Spyware is an “independent, executable program on your computer that collects data about Internet usage without the user of the program knowing that the software is even installed and performing” (Tom-Cat, 2002). One main act of spyware is that when it traces the user’s Internet habits, it sends this information secretly back to a outside server, usually owned by the developer of the freeware or adware that has been downloaded and installed into that computer (Tom-Cat, 2002). The primary reason why spyware was started in the first place was to collect demographic information for advertising purposes (Counter…(1), 2002). Basically, it profiles consumer, “tracking their web habits, then sending that information to remote servers where it is determined which ads best fit the user’s profiles” (Mello, 2000). Information about the user is also sold to marketing companies for a profit.

 Unfortunately, spyware is capable of doing more then simple market analysis.  Spyware has the ability to “monitor keystrokes, scan files on hard drives, read cookies, change default settings, see what websites users visits and for how long, and is designed to send all this information back to the programmer. Because spyware is an executable program it is not limited in the ways websites are that use cookies” (Counter…(1), 2002). Spyware is more dangerous due to the fact that it has the capability to spy on all activities on a computer, causing a high alert for a security risk (Counter…(1), 2002).

On Windows 95 and 98, privileges of a spyware program include ability to read, write and delete files, and download and install other software. This action is called AutoInstall or AutoUpdate, which is not secure. It opens the computer to other spyware programs and crackers. The spyware can even format the hard drive of the computer. Windows NT, on the other hand, has the ability to limit spyware a bit, but it would still be able to do anything the user could do. This could be a risk if the software was installed on a computer that one with administrator privileges uses (Counter…(1), 2002).

With both operating systems, a unique code is placed on the computer to identity it and to track it. The problem with spyware is that it can go easily unnoticed. It is known to “hide in the background, not appearing on the directory list of programs, and some even reinstalls itself even after it has been deleted” (Counter…(2), 2002). It might even remain active after the removal the freeware that contained the spyware (King, 2001). While it is clear that such a program is a security risk, as well as invasion of privacy, too many Internet companies that are filing for bankruptcy are finding that spyware is an attractive way to make quick money by selling the information gathered to the highest bidder of marketing research or other agencies (Mello, 2000).

Steven Gibson of Gibson Research, a privacy software expert, explains that “any software is guilty of information theft if it is using a back channel to communicate information though the Internet without the explicit, informed consent for such use by the user” (Tech Target, 2001).

Not all adware is spyware, however. “To become spyware, the program has to be entering the system without notifications. Many adware companies are now offering consumer options such as ‘Opt In’, and disclosure statements before any information is collected” (Tom-Cat, 2002), therefore making the information gathering process an option. Also, many companies are revising their privacy policies and wording the End User License Agreement in a way that is clear and understandable (Tom-Cat, 2002). Yet, there are still some software companies that cleverly word their policy to hide the fact that a spyware maybe installed, or some have even conveniently failed to mention such software in the policy at all (Tom-Cat, 2002). The following is from Transcom’s Beeline and is an example of how an End User License Agreement may read.  It states that: "By becoming an End User, you hereby agree that Transcom may share with other parties both aggregate information and limited individual information gathered during your use of Transcom’s Beeline and /or the Internet. You also agree that locator information about you may be gathered, processed or used as provided in the following instances: email address, physical address and/or other data that enable the recipient to personally identify the End User" (Gibson, 2000).  While Transcom openly admits to watching and recording the end user’s use of not only their product but of also the Internet, there are many other software companies to beware of that are not so honest.

 

How Congress plans on stopping Spyware

As of today, “spyware is not an illegal type of software” (Simply…2002). However, with actions from Congress, this may change in the near future. Co-Founder of People for Internet Responsibility, Lauren Weinstein believes that "user information sent to a third party should be fully disclosed and approved by the user. This does not mean by hiding that disclose in a licensing agreement that most people will never see or that can be changed at anytime" (Mello, 2000).

Congress is even realizing how threatening spyware can be. Senator John Edwards introduced two Internet privacy bills to Congress in 2000. The Spyware Control and Privacy Protect Act (S3180) will require “manufactures of spyware software to give consumers clear and conspicuous notice, at the time of installation that the software contains spyware. Under this act, consumers will be notified of what information is being collected and to who will be receiving it, and then the spyware program will not be activated until the user decides” (Krebs, 2000). This method is called "Opt In", where companies ask permission from the user first before collecting information. Currently most companies are using the "Opt Out” method, where companies collect data without the user’s permission (Glanz, 2001). Also, information must be sent and stored securely and encrypted, allowing users access to the information collected to correct any errors to ensure accuracy. If this act is passed into law, it will allow the user to sue the software programmers for $500,000 per violation of their own policy. However, there are some spyware that are exempt from this act. For example, employers using spyware to monitor Internet usage of their employees will not fall under this act (Krebs, 2000).

The second act introduced to Congress is the Electronic Privacy Protection Act (HR 5571). It would require physical devices to be attached to the outside of a computer that contains monitoring software. Again, this would fall under the employer monitoring the employee category, not necessarily the spyware that comes bundled with freeware.

To file a complaint against a violation of privacy, the Federal Trade Commission (FTC) handles complaints about deceptive or unfair business practices (Simply…2002). Their web address is www.ftc.gov.

 

Types of Spyware

            There are many popular software applications on the Internet that contain spyware. This next section will expose a few of them and explain what the spyware code in them does to a computer, as well as user’s security and violation of privacy.

            Aureate, who changed its name to Radiate, has been around long enough to be installed in over 30 million computers worldwide. Radiate collects demographic data that advertisers can use to target audiences. Some features include ads being displayed even while the user is not connected to the Internet; splash screens; customized demographic collections; and real time surveys. Besides transmitting ads, Radiate can also update itself. The EULA states that the "software will connect to the Internet ubiquitously to download advertisement and /or provide software updates." Radiate puts a numerical identifier on the computer allowing it know who sees their ads, the frequency it is viewed, and then reports that information back to the software company. According to the EULA, from time to time Radiate will share this information to other ad serves such as Flycase, 24/7 Media, Doubleclick, AdForce, Adsmart, and Teknosurf.   The software has also been known to cause browser instability and crashes. Some Aureate/Radiate files to search for on a computer include: admage.dll, advert.dll, amcis.dll, amcisz.dll, anadsc.ocx, anadsv.ocx, htmdent.exe, ipcclient.dll, msipscv.exe, and tfde.dll (Privacy Power, 2000).

            Comet Cursor by Comet Systems is software that changes the cursor when the user visits certain websites. All Comet Cursors (expect in Real Player 7) contains a global unique identifier, also know as a download number. Comet Cursor is a “browser extension that gives websites the power to change the cursor, substituting it for any image or animation” instead of the usual arrow (Privacy Power, 2000). It then collects the IP address and operating system information, the type of browsers used, and the time of visit. The software then contacts its server to record what URL the user was at when the cursor changed, and what URL the user chose to view immediately after seeing the cursor change (Privacy Power, 2000). Users can prevent Comet Cursor from automatically installing itself by setting a prompt on download signed Active X. Do this by clicking on the Tool tab, Internet Options, Security, Custom Level, Download Signed Active X Controls, check “Prompt.”

            Cydoor is similar to Radiate. It places advertising in its software and uses a global unique identifier. The software does not even have be Internet related, the user only needs to access the Internet occasionally so ads can be downloaded secretly in the background and stored in a protected ad cache within each user's computer. Ad loads and reports are transmitted the moment the user connects to the Internet. Cydoor will also inquire for information concerning gender, age, interest, marital status, and education. Like Radiate, it measures how many people their ads reach and the frequency they are viewed. The trouble with Cydoor is that “if the user terminates the host software, Cydoor will install itself without it. This also happens if the host software is installed, then later uninstall, Cydoor will not uninstall with it, and it does not provide an uninstall option” (Privacy Power, 2000).

            Hot bar is a browser toolbar that collects and stores information about the user in its server. By monitoring browsing habits, it determines which ads to deliver to the user’s browser, which button to display on the toolbar, and delivers a flash popup to any URL the advertiser chooses. Hot bar stores the IP address, domain name, URL of the websites visited, hot bar cookie number, and the date and time logged on. It also remembers search terms typed into search engines, what toolbar button the user clicked on, what links clicked on, and the amount of time spent at each session. Worst of all, if personal information is entered into forms, Hotbar may collect this information as well, if the site forwards the entered information via form scripts (Simply…2002).

 

How to protect a Computer

            Although having spyware on one’s computer is a risk, there are several ways to prevent this from happening and to remove them if it does happen.

First, if one is not sure of a freeware/shareware program, it should always be checked out first before it is downloaded to avoid the risk of installing spyware into the computer. There are several websites to go to that contain large databases of software names known to contain spyware. Just to name a few, some websites are: spychecker.com; tom-cat.com; surasoft.com; spywareinfo.com; and idcide.com.

            Another way of protecting a computer is by using a free download from LavaSoft.com called Ad-aware. Ad-aware works very much like an anti-virus protection program, where it will check your drives for spyware programs. It will scan memory, registry, and hard drives for known spyware and gives the user options to choose the ones they would like to have automatically removed and then removes them safely for their computer. Ad-aware is kept up to date of new software names that contain spyware with RefUpdate. Also, from LavaSoft is Ad-watch, which is an “anti-spyware monitor that silently runs in the background waiting for spyware to try to install or modify the registry.” Ad-aware will stop this action from happening and immediately alerts the user (Tom-Cat, 2002). However, RadLight version 3.03, a multi-media software, will delete Ad-aware if installed. According to its End User License Agreement, RadLight will search for the default  “Ad-aware installation path" and remove it if found. It will then install two spyware applications, WhenU.com's “Save now”, and New.net's web navigation plugin (McWilliams, 2002).  Ad-aware users must re-install Ad-aware again to make sure it is working correctly.

            Finally, firewalls can also alert users of any spyware presence and its activities. One free firewall that blocks spyware communications is Zone Alarm by Zone Labs.  It is a firewall that monitors all Internet traffic, alerting the user of any software trying to transmit data leaving thought the Internet. It allows the users the option of either allowing the transmission to take place or to block it. It also makes the computer's ports in "stealth mode", which means it is invisible to the Internet and to hackers (Simply…2002).

            In conclusion, while downloading freeware may be the inexpensive way to acquire software, one has to be careful about which freeware they choose to download. Although there are adware that do not contain spyware, more often then not, adware software has a Trojan horse code within its programs. The potential security risk and invasion of privacy puts all Internet users in jeopardy. Until laws are passed that prevent this type of software to be distributed, computer users must protect their information by only downloading trusted software; using Ad-aware to find existing spyware on the computer system; or installing a firewall like Zone Alarm to alert of all and any suspicious Internet usage.

 

 

 

Works Cited

 

Counter Exploitation (1). “The Trouble with Spyware and Advertising-supported

Software.” (2002) http://cexx.org/problem.htm 20 April 2002.

 

Counter Exploitation (2). “What is Spyware.” (2002) http://cexx.org/whatis.htm

            20 April 2002.

 

Gibson, Steven. “Fine Print Funny Business.” Gibson Research Corporation. (2000)

            http://grc.com/oo/fineprint.htm 13 April 2002.

 

Glanz, William. “Protecting Personal Data.” Insight on the News. (16 April 2001)

            http://www.findarticles.com/cf_0/m1571/14_17/75819902/p1/article.jhtml

            20 April 2002.

 

King, Mike. “Ad-aware.” Computer Weekly. (18 January 2001)

            http://www.findarticles.com/cf_0/m0COW/2001_Jan_18/69673216/p1/article.jhtml

            20 April 2002.

 

Krebs, Brain. “Sen. Edwards Intro’s Spyware Control Act.” Newsbytes. (9 October 2000)

            http://www.findarticles.com/cf_0/m0NEW/2000_Oct_9/65908292/p1/articles.jhtml

            20 April 2002.

 

McWilliams, Brain. “Anti-Spyware Program Targeted by Multimedia Player.” Newsbytes.

            (23 April 2002) http://www.newsbytes.com/news/02/176075.html 25 April 2002.

 

Mello, John P. “Is this an Intelligent Agent?” CFO, The Magazine for Senior Financial

Executives. (Winter, 2000)

http://www.findarticles.com/cf_0/m3870/15_16/68160585/p1/article.jhtml

20 April 2002.

 

Privacy Power. “Adware, Badware, Spyware Profiles.” (2000)

http://www.accs-net.com/smallfish/index.html 27 April 2002.

 

Simply the Best. “Spyware.” Security Tools-Shareware. (2002)

http://www.simplythebest.net/info/spyware.html 13 April 2002.

 

Tech Target. “Adware.” (2001)

http://whatis.techtarget.com/definition/0,289893,sid9_gci521293,00.html

13 April 2002.

 

Tom-Cat Internet Solutions. “Is it Adware, or is it Spyware?” (2002)

http://www.tom-cat.com/adware.html 13 April 2002.