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Computer SpywareDefining computer spyware isn't hard but I actually like what's on the FTC's web site (the USA Federal Trade Commission) says:
"Installed on your computer without your consent, spyware software monitors or controls
your computer use. It may be used to send you pop-up ads, redirect your computer
to websites, monitor your Internet surfing, or record your keystrokes, which, in
turn, could lead to identity theft."
So, computer spyware does various things but its main functions are to monitor and/or control your computer. I'm going to go out on a limb here and guess that you don't want strangers doing that. Yeah, me either. In the beginning... No, not the Biblical beginning but the beginning of computer spyware. At first, it was just annoying. Things like ads popping up and your browser getting re-directed to another web site. This kind of behavior would be called "adware" but it gave birth to more sinister tools. But before long, spyware authors figured out that they could take control of things for themselves. They started installing toolbars in your browser without your permission and recording your keystrokes. Here's an example of toolbars installed by computer spyware in Internet Explorer: 
So, why do they do this? Well, one reason is that if they can force you to browse on their terms they can steer you to what they want you to see. A certain number of people will then buy products and/or services from them. Another big advantage is that they study your surfing habits. They might just show you ads based on your shopping habits but they also might overwhelm you with porn ads, certain organ enlargement products, and so on. But the worst part is that some computer spyware could just steal your identity. Once they have a back door into your computer, they can look at your files and take what they want. Bank account numbers, numbers that identify you like the social security number in the U.S., credit card numbers--all of these help them assemble a picture that they can use to pretend they are you. This is why it's a good idea to store login and password information in a secure login manager and have a master password to get into it. Roboform offers a virtual keyboard that you can type your master password into with your mouse that avoids your keystrokes being logged. Here's an image of that: 
You also might see new icons in your system tray. This might also be the work of computer spyware. If you didn't install them, be suspicious. Wikipedia has a short list of common computer spyware programs. You can read the details for yourself (each item has a link to more information). I've included an excerpt to tantalize: 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.[31] 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.[32]... MyWebSearch (of Fun Web Products) has a plugin that displays a search toolbar near the top of a browser window, and it spies to report user search-habits.[38] MyWebSearch is notable for installing over 210 computer settings, such as over 210 MS Windows registry keys/values.[39][40] Beyond the browser plugin, it has settings to affect Outlook, email, HTML, XML, etc. Although tools exist to remove MyWebSearch,[39] it can be hand-deleted in 1 hour, by users familiar with using Regedit to find and delete keys/values (named with "MyWebSearch"). After reboot, the browser returns to the prior display appearance. ... 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 (as seen in their [Zango End User License Agreement]).[17] Computer spyware can be really ugly and damaging so make sure your running an Internet security suite and be very careful about free offers, software, and links to unknown sites. If you notice weird ads or behavior related to toolbars, re-direction, etc, there are some tools here to help you get rid of any any pesky spyware. Also, to help prevent installation of these vermin in the first place, check out the Security Tweaks page. 
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