Some sniffer programs, such as tcpdump, capture only raw data, while others, such as sniffit, have built-in packet reconstruction algorithms and address filters. Some may have an explicit password filter, producing a compact log of username/password/host data. Some apparantly send detected passwords to an IRC channel in realtime.
There is now a program neped which will detect some Unix variants running a sniffer by using a mismatched ip/MAC address.
Packet sniffers usually have to be run as root, which implies that root must first be compromised. The sniffer typically generates a logfile, which must be hidden somewhere - such as in hidden directories, e.g. "...", or less-frequented system directories, e.g. X11 support. The name of the sniffer may be disguised, but it will show up in process logs (ps, top) as using CPU. The intruder must login to the host occasionally to retrieve the logs, and restart the sniffer to avoid building a suspicious-looking CPU usage.
Sniffers are typically run by an intruder on a Unix machine. It's possible for a Windows machine to run a sniffer, too, by someone with physical access to the PC. The Juggernaut network cracker allegedly can reside on a bootable floppy disk which an intruder could run on an unattended PC, and there are plenty of Ethernet monitoring tools available for Windows. The W95 trojan/admin tool Back Orifice has a sniffer plugin which may be run across the network. (WinTop from the kerneltoys package may be useful to monitor system activity for unauthorized programs.)
In theory, a program propagated as a virus could act as a packet sniffer and open a tcp/ip socket allowing an intruder to retrieve data logs. This is conceptually possible with a BackOrifice plugin.
X-terminal users may wish to use LAT to connect to an Alpha, then ssh to connect to the required host. LAT transport is not monitored by common sniffers. Another possiblity is to use a less-common TCP port, e.g. 57, for telnet since password filters typically monitor only port 23. You would have to configure inetd.conf on the host machine to enable this.
A.Daviel