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Spybot-R uses the KaZaA peer-to-peer file-sharing network to spread by masquerading as key-generating programs for popular games and software applications.

If a user downloads one of these files off the network, when run, it will display a fake error message and create a folder into which it places copies of itself, again using filenames such as Windows XP Professional Keygen by CaFo.exe.

It also makes a number of Registry edits to ensure that the files are shared and that the worm runs itself each time the computer is restarted.

Spybot-R also opens a back door to an infected machine through IRC channels, whereby an attacker could gain remote control of the computer. It also contains key-logging capabilities that could record your passwords and credit card details when typed.

Spybot-R has aliases Spybot.Worm and Worm.P2P.SpyBot.gen.