Trojan horse allows attacker connect to Internet through your computer

A malware named Trojan-Proxy.Win32.Agent.y is on the prowl and like other members of its family, this one too facilitates a remote attacker to access the Internet via a compromised computer, say security experts at MicroWorld Technologies.
 
Win32.Agent.y comes to your computer when you download many dubious, free applications from the Internet. Drive-by-Download is another mode of propagation for the Trojan as malicious websites force it into computers by exploiting browser vulnerabilities, where all you need to do is to view those websites to get infected.
 
After finding its way into the computer, the Trojan activates an HTTP Proxy Server on TCP port 12080. It then uses a special configuration program to give a random port number for the proxy. Using it, a remote attacker can connect to different websites and launch nefarious activities like Online Robbery, Identity Theft, Denial of Service attack and Click Fraud Scam.
 
If Win32.Agent.y is only used for masking IP addresses of attackers, some other Backdoors and Trojans can be employed to take over the computers completely. According to a report published by FBI on Wednesday, over 1 million computer IP addresses are taken over across United States by remote attackers. Because of their widely distributed capabilities, such botnets are a growing threat to national security, national information infrastructure and economy, FBI said.