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The direct cost of cleaning up the network and installing a secure content management system was €27,000. But that figure doesn’t include loss of productivity, opportunity costs or damage to its goodwill in the marketplace.

Unknown to the user, spyware installs software on your PC or laptop that transmits data to a central service, where such information, ranging from browsing habits to credit card details, has a commercial value.

It often — though not always — emanates from pornographic or illegal music download sites. Finglas believes a “holistic approach”, including education, firewalls and antivirus software, is required to beat it.

Research published as part of the recent government-backed Make IT Secure initiative backs this up. It found that three out of four Irish internet users don’t know what spyware is and 90% don’t know what phishing means. It is sending bogus e-mails that attempt to gather personal or financial information from recipients.

Espion specialises in breaking into the computer networks of large companies and government agencies to identify weak spots in their infrastructure.

“In some cases you can be duped into accepting spyware if you click on pop-ups, some of which actually purport to scan your computer for spyware,” said Colm Murphy, Espion’s technical director.

Not all spyware is malicious. Adware, for example, transmits marketing information.

“The worst kind of spyware are keystroke loggers that can be used to get passwords and user names. This is the kind of software you use to rob a bank,” said Murphy.

Espion research undertaken for the Make IT Secure campaign found that a computer used for internet surfing for three hours every day will attract on average one spyware attack a week. “The majority of it is in the low-risk category,” said Murphy. “But if you access porn sites, that number doubles and the spyware is more likely to be of the more sinister variety.”

Another study indicates that the average computer has 28 items of secret monitoring software on it.

Both Finglas and Murphy point out that the greatest risk from spyware is not so much crime, but the costly degradation of your computer’s performance.

“Spyware clogs up your network and takes up bandwidth that you are paying for. It’s a little like having your electricity stolen,” said Murphy.

In most cases the first sign you have a spyware problem is that your computer becomes sluggish. This is because of logjams caused by the spyware uploading information about you and downloading pop-up ads tailored to match your browsing habits.

Avoiding spyware isn’t necessarily costly. Simply ignoring seemingly innocuous calendars, clocks or toolbars — used as bait for downloading spyware — can help enormously.

“It is also relatively easy to prevent if you set your internet settings in Internet Explorer, which most people use, to high. That will help stop dodgy stuff getting in and won’t cost you a cent,” said Murphy.

“Also, don’t download anything that you are prompted to download unless you have specifically requested it. Always say no. People often say yes without thinking.”

But in some cases you may unwittingly have given permission for security-compromising software to be downloaded. Conall Lavery, managing director of IT security company Entropy, said: “You often find adware mentioned in a website’s terms and conditions — the problem is they are usually so long and complex that nobody reads them.”

Beating spyware requires a combination of firewalls (which prevent unauthorised access to private networks) and up-to-date spam filtering, antivirus, spyware- and URL-blocking software. It also requires the education of employees in relation to computer usage.

“Broadband means the internet is so much faster that staff are more likely to be surfing sites that are not work-related,” said Lavery.

Small firms also need a change of attitude. “When it comes to IT security, small firms tend to want to buy something in a box and have it sorted. This particular problem doesn’t work that way. Just as the lock on your business door is augmented with shutters and alarm, you need to take a multilayered approach to IT security.”

For more information on ,securing your IT systems see www.makeitsecure.ie. Free spyware scanners are available from www.safer-networking.org. Internet useage policy templates are available from the Small Firms Association at www.sfa.ie