Spyware is software that collects personal information from your computer without your knowledge. It can look at which sites you're visiting or access information like usernames and passwords. What's worse, it can send this information to a third party without you knowing it. The software may also perform several different unwanted functions, including the delivery of pop-up ads or harvesting private information. It can serve up inappropriate ads to you and your children, and can seriously slow your computer down, as it attempts to run spyware processes instead of the programs you are trying to use.
Spyware is downloaded to your computer from the websites you visit, or invites itself in unannounced when you agree to download another program. In some cases it is mentioned in the fine text of a user agreement that you accept before downloading a program and when you agree to download the program, you inadvertently agree to host spyware.
The clues that spyware is on a computer include:
Virus & Worms
A virus is a program that can cause minor to extreme damage to your computer and
use your Internet connection to spread itself to other computers-usually those of
your friends and family. A worm is similar to a virus; however, a worm is self-contained
and does not need to be part of another program to circulate itself.
Learn more about Spyware:
http://onguardonline.gov/spyware.html