This is perhaps the most often asked question regarding internet security. Both type of software are equally dangerous, but their approach is differently.
Spyware is a type of software than is loaded benignly to a computer, which then which then keeps track of various information about the computer. This can be a fairly mild form intrusion, such as Punkbuster,which is an application that is frequently used in online games. This software scans the computer to make sure the online gamer does not cheat online by collecting information about the computer and software configuration. In the license agreement, however, it stated that other information may be recorded as well, such as internet browsing habits and computer components and software not related to games. While this does transfer information specifically about persons or their information, some consider this an invasion of their privacy.
Other spyware programs are much more dangerous, which use keyloggers to store usernames and passwords and pass them onto the originating software maker, as well as software which tries to scan the registry for any stored information, from usernames to addresses and credit card data.
The goal of spyware is to not harm the individual, but to collect data from them
Malware, on the other hand, seeks to replicate itself from machine to machine with negative for the computer that it is loaded upon. This can range from simple hoax viruses, which simply attach themselves to a computer and then simply send a copy of themselves to all of the members in a user's address book via email. Often times, this mild virus is usually a test of how it can spread before the creating hacker attaches a payload to the virus. Some of the more serious viruses can go significant damage to operating systems, such as Chernoybyl, which erased the boot block on the machine's hard drive, to Sasser, which caused widespread data corruption in SQL server applications for many corporations of all sizes. Even some of the Fortune 500 companies, with robust IT security budgets, were brought down to their knees when Sasser spread.
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