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These pieces of software are generally installed on your computer without your knowledge or consent. They often can't be removed without some kind of specialized software. If you need to be tricked into installing it, chances are you can't trust the source.
The first line of defense against spyware is to be careful installing software. Know what's being downloaded. A large percentage of freeware or shareware programs have spyware embedded in them. Sometimes that's disclosed in the user agreement, but often not.
Check for a guarantee that the software is spyware free. This won't protect you 100%, but it is a good step towards being able to trust a website.
How can you tell if you have spyware on your system? You may see pop-up advertisements even when you aren't browsing the web. Your homepage may have been changed without your consent. New toolbars are installed on your web browser which you didn't request. Your computer may be sluggish or mysteriously reboot on its own. Though, the last effect is usually a virus.
If you do get infected with spyware, there are ways to get rid of it. A number of companies make software designed to get rid of it. These programs will scan your computer and check through their database of known spyware for any matches. These databases get updated frequently as new forms of spyware are found.
Many are free, though sometimes the paid versions have more automation features such as removing spyware on receipt rather than requiring a manual scan. None will find every piece of spyware on your system, since they rely on a database which has to be populated according to someone's judgment. And, one man's spyware is sometimes another's welcomed advertiser.
Some kinds of spyware are notoriously difficult to get rid of. They may make changes to your Windows files that help them hide from the scanners. On occasion, you may need to delete them manually to be sure they're gone.
Needless to say, this should be performed only by skilled users. Deleting the wrong files can damage your programs and even your operating system.
Once the spyware has been removed from your system, you should run scans on a regular basis to keep it clean. Whether you do this manually or use a program that does it automatically on a schedule is up to you (and your pocketbook).
The scheduled scans are usually only available in commercial programs, so you'll need to pay to buy the software, plus you usually have to pay an annual fee to continue the subscription. But if you leave your computer on all the time, it can be handy to be able to have them run in the early morning, when you won't be using it.
And of course, always be aware of the risks before you accept any free offers for software on the internet. You never know what the real cost is for that free program.