If you ever laughed at someone who put a Post-it note over their webcam lens because you thought they were being paranoid, you might want to think about doing it yourself. You don't even need to be a skilled hacker to spy on unsuspecting users, as the software for doing it is available, and connections to entertaining users are traded around. The malware is a remote administration tool (RAT) that can attack your computer, allowing someone you don't know to access your files, your activities, and you. They can also taunt you by controlling what you see.
If you are unlucky enough to have your computer infected with a RAT, prepare to be sold or traded to the kind of person who enters forums to ask, "Can I get some slaves for my rat please? I got 2 bucks lol I will give it to you :b" At that point, the indignities you will suffer—and the horrific website images you may see—will be limited only by the imagination of that most terrifying person: a 14-year-old boy with an unsupervised Internet connection.
The Post-it note idea isn't a cure-all, since hackers can still access your files. The kicker is that this technology does have legitimate uses, which opens the door for abuse. Learn about this creepy hobby and how you can protect yourself at Ars Technica. Link -via Metafilter
I actually had never heard of this and it is a bit alarming. I'm not so worried about what they'd see as what else they could do....