Upon installing Sub7 will open a backdoor (enabling a port that you are not aware is open) and contact the attacker to notify them that Sub7 is installed and ready to go. This is when the fun begins (for the hacker at least).
Once installed, Sub7 is essentially all-powerful. The hacker at the other end will be able to do any of the following and more:
Often with Trojan horse programs like this the attacker will change the name of executable files to avoid detection. The executable can be named anything as long as the attacker knows what its called. Sometimes the Trojan may even have been hidden in a system file. The Trojan-infected system file will replace the real system file, but still work as it should. The impact of this is that you can’t simply “delete” the Trojan-infected file without disabling the operating system.
Some of the “1337 h4x0rz” (elite hackers in “hacker-speak”) frown upon Sub7 as a tool for novices and script-kiddies. That doesn’t stop this utility from being a useful tool for hackers and a threat to you- it just means that the hacker using it will get no respect from you OR the 1337 h4x0rz.
To protect yourself, you should never download or install any program from any person or web site you don’t implicitly trust. You should also have your operating system patched and be running updated antivirus software to narrow the possible methods of getting this Trojan into your system. Lastly, think twice about whether bizarre activity on your computer is a “fluke”. You can use a tool like Ad-Aware to scan your system for known spyware if you think you may have something.