Spyware, Adware, Malware and Badware are terms that are often confused or used interchangeably. They all refer to unwanted or potentially unwanted software, but are very different in their meanings.
In keeping with emergent industry standards, iS3 -the maker of the ZILLAbar and STOPzilla Anti-Spyware- uses the word, "Spyware" to refer to potentially unwanted software that is non-viral in nature. Spyware includes the following behavior that is illegal under existing law - Section 5 of the FTC Act, 15 U.S.C.§45 - as an unfair or deceptive act or practice.
Spyware:
Gathers information from a user's computer without knowledge OR consent;
Reports the information to the creator of the software or to one or more third parties;
Is installed on a user's computer without having given adequate notice to the user;
Provides the user with little or no control over removing the software.
Spyware typically performs one or more of the following stealth activities:
Changes system settings.
Installs unauthorized dialers.
Installs keyloggers.
Collects and reports user's personal information to the developer of the software or to one or more third parties.
Uses computer processing capacity without permission.
Delivers spam or ads without user's notice and consent.
Adware is not necessarily malicious. It refers to programming installed on a user's computer that typically takes the form of pop-up ads displayed while the user is surfing. Adware is most effective when guided by Spyware, which monitors the user's surfing and then delivers ads that pertain to the type of sites visited. For example, if a user were looking for mortgage rates, targeted ads from mortgage brokers, realtors or lenders might be delivered. These ads would be more effective than ads for vacations or sports equipment, for example.
From malicious software, Malware is designed specifically to interfere with, damage or otherwise disrupt a system. Adware, Spyware and viruses are often classified under the rubric of Malware. Its severity runs the gamut from the mere nuisance, such as unsolicited pop-up ads, to dangerous parasites that can bring a system to a halt. These dangerous applications include homepage hijacks, Trojans and keyloggers.
"FREE" games, music, graphics, toolbars and/or applications are where Spyware and other Malware threats are generally hidden.
Read privacy policies as well as EULAs (End User License Agreements. If you cannot find these documents DO NOT DOWNLOAD!
Badware is the broad term for all types of dangerous software programs that can harm your computer. For example, there is some gray area about whether certain software is actually Adware or Spyware. Spyware, and Adware could be potentially unwanted software. Badware is, without a doubt, unwanted and malicious.