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Spyware is software (malware) that resides on a computer and sends information to the person who create it. That information may include surfing habits, system details or, in its most dangerous form, passwords and login information for critical applications such as online banking. Many spyware programs are more annoying than dangerous, serving up pop-up ads or gathering e-mail addresses for use in spam campaigns. Even those programs, however, can cost you valuable time and computing resources.

Often, spyware comes along with a free software application, such as a game or a supposed productivity booster. Once it's downloaded to your computer, the functional element of the software works exactly as promised, while the information-gathering system sets up shop behind the scenes and begins feeding your personal data back to headquarters.

In many cases, the hidden activities of the software are clearly described in the end-user license agreement (EULA) that is displayed during the installation process. This protects the developer from potential legal action because they can prove you knew (or should have known) that the program included this functionality when you installed it. Most of us, however, don't read EULAs because they are long, boring and written in hard-to-understand legalese. As further proof that there's a software application for everything these days, you can now obtain software that will read EULAs for you and display a warning if keywords or phrases indicate there's a spyware risk.

In addition to spyware, there are other kinds of invasive programs that can make your computing life miserable, so it's worth it to take a moment to define a few terms:

Malware: Short for malicious software, malware is a catch-all phrase used to define any program that runs on a computer without the user's knowledge and performs predetermined functions that cause harm. In that sense, spyware can also be malware.

Adware: Similar to spyware and malware, in that it resides on a computer without the user's knowledge, adware specifically refers to programs that display pop-up advertisements. The subject matter of the ads is often based on surfing habits, but may also be tied to a specific advertiser.

Virus: As the name implies, a virus is a program that is designed to spread itself among files on a single computer or computers on a network -- usually the Internet. Often, crackers (hackers with malicious intent) create these programs just to see how far they will spread. Unfortunately, even a supposedly harmless virus can have a serious effect on processing and network operations.

Worm: Similar to a virus, a worm spreads itself around a network. Worms, however, do so by making copies of themselves as they spread. They also may be capable of changing their profile to avoid detection.

Trojan: Like the infamous horse of Greek mythology, the computer version takes on the appearance of something benign, such as an update or add-on to an actual program. Once on your computer, it may perform harmful functions such as erasing your hard disk or deleting all your image files. Like spyware, a Trojan may also gather information and send it to the developer.

Cookie: While cookies aren't really malware, they can be used in similar ways. Cookies are small data files used by Web sites to store information on your computer. For example, a shopping site may want to identify items you've looked at, but not purchased, or store data on current purchases until you head for the checkout. A less scrupulous site, however, may decide to look through your cookies for personal information, such as recent sites you have visited.

Remember few points to keep safe:

When it comes to spyware, the best defense is a great offense. Taking action to avoid getting spyware on your computer in the first place helps prevent you from becoming a victim. That is, of course, easier said than done. However, there are a number of actions you should take to guard against the spyware threat:

Keep Operating System (OS) up-to-date by setting up automatic updates in the control panel. Most of the OS manufacturer issues critical updates at least monthly. Many of those are designed to eliminate or avoid specific spyware threats.

Install an anti-virus software package and keep it updated at all times. There are many of these available, some of which are free. The most popular brands include Norton, Microsoft Defender, McAfee, Spybot, Search & Destroy, Pest Control and Grisoft. Your Internet service provider may offer a utility or guide you to a recommended solution, too.

Don't download shareware (or anything else for that matter) from unknown sources. Seek out reliable providers of free utilities, such as download.com.

When you do download software, read the end user license agreement before committing to the installation. When in doubt, do not install the software.

Don't click on any pop-up or advertisement for free anti-spyware software. These are almost always fake, even if they carry the name and logo of a well-known publisher. Ironically, this is a very popular method used to distribute spyware and other malware. If you're looking for anti-virus software, go directly to the company's Web site and be sure you're where you think you are.

Set your browser and operating system security level to at least the medium setting (or higher) for best results. You may see a few more warning messages, but it's a small price to pay for security.

Install a firewall and, if you have a home network, use a separate router, rather than sharing the Internet connection through one of your computers. This puts one more barrier between you and the bad guys.

Avoid questionable Web sites. If you visit a site that seems strange, there's a good chance you shouldn't be there.

If a virus alert appears on your screen as you visit a Web site, don't click on it, even to close it. Instead, type control-alt-delete to launch the Task Manager and use the "End Task" command to close the window. Next, use your own anti-virus software to run a complete scan of the system.

Never open an e-mail attachment if you're uncertain of its source or the sender.