Spyware Industry Topping $2 Billion: Report

BOULDER, Colo. — Despite spates of negative news accounts and increasingly aggressive action by states’ attorneys general, spyware continues to proliferate to the tune of $2 billion a year, according to a report from online security firm Webroot.

Independent research and data gathered by Webroot’s Spy Audit service, which used automated software to search for spyware on thousands of computers, showed that 88 percent of home computers and 87 percent of corporate machines had been infected with malicious code.

On average, each computer had 28 different snooping programs on it.

“Clearly, there’s a growing awareness of the spyware issue, but that has not translated into any kind of rapid decline in the programs,” Webroot CEO David Moll said. “As long as there is an attractive return on investment on this activity for some people, this isn’t going to stop anytime soon.”

“There’s a huge amount of money changing hands here,” Harvard researcher Ben Adelman, the man widely referred to as spyware’s most dangerous enemy, said. “The biggest, richest companies are being advertised through spyware… That’s names like American Express, Sprint PCS, Disney [and] Expedia.”

Moll said that he expects to see more and more anti-spyware lawsuits filed as consumers continue to complain about unwanted downloads and government officials attempt to eat into practitioners’ profits, but that may be easier said than done.

Spyware has become a hot-button issue in 2005, with advertisers thus far winning most of the major battles.

In January, Rep. Mary Bono, R-Calif., introduced an anti-spyware bill, and her colleagues in the House promised to fast-track the bill; but it quickly became mired down in debate and has seen no further action.

Then, in February, the Consortium of Anti-Spyware Technology Vendors, formed in 2003 to combat the spread of spyware, disbanded when the group’s three largest members pulled out after several powerful online advertising companies managed to gain entry and cause dissention.

Just last week, however, New York Attorney General Elliott Spitzer filed suit against web marketer Intermix Media.

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