The Remote Administration Tool allows hackers to spy on your webcam.

Remote Administration Tool (RAT) aren't new; the hacker group Cult of the Dead Cow famously released an early one called BackOrifice at the Defcon hacker convention in 1998. The lead author, who went by the alias Sir Dystic, called BackOrifice a tool designed for "remote tech support aid and employee monitoring and administering [of a Windows network]." But the Cult of the Dead Cow press release made clear that BackOrifice was meant to expose "Microsoft's Swiss cheese approach to security." Compared to today's tools, BackOrifice was primitive. It could handle the basics, though: logging keystrokes, restarting the target machine, transferring files between computers, and snapping screenshots of the target computer.
Today, a cottage industry exists to build sophisticated RAT tools with names like DarkComet and BlackShades and to install and administer them on dozens or even hundreds of remote computers. When anti-malware vendors began to detect and clean these programs from infected computers, the RAT community built "crypters" to disguise the target code further. Today, serious ratters seek software that is currently "FUD"—fully undetectable.
Building an army of slaves isn't particularly complicated; ratters simply need to trick their targets into running a file. This is commonly done by seeding file-sharing networks with infected files and naming them after popular songs or movies, or through even more creative methods. "I seem to get a lot of female slaves by spreading Sims 3 with a [RAT] server on torrent sites," wrote one poster. Another turned to social media, where "I've been able to message random hot girls on facebook (0 mutual friends) and infect (usually become friends with them too); with the right words anything is possible."
For those who can't even manage this on their own, RAT experts hawk their slave-infecting expertise in e-books such as Rusty_v's Spreading Guide v 7.0, a 22-page tome that goes for $14.95 (and which claims to be the best-selling book on Hack Forums). "Ever faced a situation where you have FUD server but cannot get victims?" goes the sales pitch. "Or maybe you're getting a lot less installs compared to the amount of work you are putting in?" Followers of Rusty_v's methods are told they can pick up 500-3,000 slaves per day. The book is "noob friendly" and features "many screenshots."
And if even this handholding isn't enough, more successful ratters sometimes rent out slaves they have already infected. In other cases, they simply hand them off to others in a "Free Girl Slave Giveaway."
Calling most of these guys "hackers" does a real disservice to hackers everywhere; only minimal technical skill is now required to deploy a RAT and acquire slaves. Once infected, all the common RAT software provides a control panel view in which one can see all current slaves, their locations, and the status of their machines. With a few clicks, the operator can start watching the screen or webcam of any slave currently online.
"Man I feel dirty looking at these pics," wrote one forum poster at Hack Forums, one of the top "aboveground" hacking discussion sites on the Internet (it now has more than 23 million total posts). The poster was referencing a 134+ page thread filled with the images of female "slaves" surreptitiously snapped by hackers using the women's own webcams. "Poor people think they are alone in their private homes, but have no idea they are the laughing stock on HackForums," he continued. "It would be funny if one of these slaves venture into learning how to hack and comes across this thread."
Whether this would in fact be "funny" is unlikely. RAT operators have nearly complete control over the computers they infect; they can (and do) browse people's private pictures in search of erotic images to share with each other online. They even have strategies for watching where women store the photos most likely to be compromising.
"I just use the file manager feature of my RAT in whatever one im using and in [a RAT called] cybergate I use the search feature to find those jpgs [JPEG image files] that are 'hidden' unless u dig and dig and dig," wrote one poster. "A lot of times the slave will download pics from their phone or digital camera and I watch on the remote desktop to see where they save em to and that's usually where you'll find the jackpot!"
Women who have this done to them, especially when the spying escalates into blackmail, report feeling paranoia. One woman targeted by the California "sextortionist" Luis Mijangos wouldn't leave her dorm room for a week after Mijangos turned her laptop into a sophisticated bugging device. Mijangos began taunting her with information gleaned from offline conversations.
For many ratters, though, the spying remains little more than a game. It might be an odd hobby, but it's apparently no big deal to invade someone's machine, rifle through the personal files, and watch them silently from behind their own screens. "Most of my slaves are boring," wrote one aspiring ratter. "Wish I could get some more girls with webcams. It makes it more exciting when you can literally spy on someone. Even if they aren't getting undressed!"
One poster said he had already archived 200GB of webcam material from his slaves. "Mostly I pick up the best bits (funny parts, the 'good' [sexual] stuff) and categorize them (name, address, passwords etc.), just for funsake," he wrote. "For me I don't have the feeling of doing something perverted, it's more or less a game, cat and mouse game, with all the bonuses included. The weirdest thing is, when I see the person you've been spying on in real life, I've had that a couple of times, it just makes me giggle, especially if it's someone with an uber-weird-nasty habit."
By finding their way to forums filled with other ratters, these men—and they appear to be almost exclusively men—gain community validation for their actions. "lol I have some good news for u guys we will all die sometime, really glad to know that there are other people like me who do this shit," one poster wrote. "Always thought it was some kind of wierd sick fetish because i enjoy messing with my girl slaves."
http://arstechnica.com/tech-policy/2013/03/rat-breeders-meet-the-men-who-spy-on-women-through-their-webcams/