This is not a piece of clothing worn by James Bond.  It is a line of code or software which reports your activities to someone or some place; frequently a software company or vendor.

Most of us are familiar with with programs asking us to register with the vendor. But some programs employ spyware to track our movements or keystrokes on the computer. The programs, spyware, or trojans then attempt to pass this information on by 'phoning home' (using your internet connection to report your actions/keystrokes to others).  When this is done without your prior knowledge and permission, it is considered spyware.

Frequently the spyware comes bundled with an application which we have given permission to access the internet, like Gator, GetRight, or ReGet, which are used to download files or programs from the internet.

Some companies which use this technology in their products are Aureate/Radiate, Comet Cursor, Cydoor, and there are many more.  Fortunately, there are some good free anti-spyware programs.

A variation of Spyware is Scumwear, software which redirects/hijacks viewers from one web page to another without user input.  eZula TopText, Comet Cursor, and KaZaA are some of the more common ones.  Frequently these types of programs will redirect or change your browser's homepage to a porn site or some other site other than the one you want.

One of the newest threats is a recently discovered virus which accompanies an E-greeting card.  When you go to the web site to view the card someone has sent you and click to view it, you are prompted to install new software. As part of the software installation you are asked to OK an EULA  (End User License Agreement).  This is a worm which will use your address boot to propagate.

Good Anti-Spyware Sites