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Originally Posted by Gnam
I mean, could there be a way for some hacker to install a key-logging spyware program along with an apparently innocent Extension?
Gnam
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That is absolutely possible. Extensions can work in two ways... either by adding mere Javascript code to the browser, or by adding and calling an external routine in a DLL/EXE. So virtually anything is possible for the coder of an extension.
For this reason, beside performance reasons, I suggest you install only as many extensions as you really need, and only from sources that look reliable to you (like the
official Firefox extension site).