I have been helping a friend with his computer. We found that trying to update or install anti-virus protection kept failing. That made us suspect the machine had a virus or other malware such as a worm that was stopping the update or installation. Eventually, we found an anti-virus program that was able to be installed. It was unpacked and run. It found a couple of viruses and removed them. Then, the AVG program, which we know better and use, could be installed and it was run.
My version of basic computer security software is an anti-virus program and an anti-tracking-cookie program. The viruses side have aimed at destruction, damage and chaos. The tracking cookies send info on your browsing to companies that sell the info to vendors who would be interested in sending junk mail or spam to you about their products that your habits tell them you might buy.
Key loggers can be installed on a computer that record each key you pressed and can send a record of your activity to others. Your logons, passwords and messages can be extracted from the record. Protection software has told me a couple of times that I had a keylogger on my machine. I see that I can put the term into Google and find sites that will sell me keylogger software for very little. Someone else can do that, too. If I will just be so kind as to as to install in on my machine and arrange for it to be in the name of someone who wants it, that someone can have access to my email, etc.
According to this article on a Wired.com blog, computer deviltry is reaching new heights of smarts and speed. It is worth a look.