Daring Fireball mentioned Orbicule's Undercover, and so did TUAW. After reading Orbicule's recovery stories, I'm a bit creeped out, though.

Undercover is spyware. It records your IP, takes screenshots, and (if an iSight is available) takes photos (presumably the green activity LED on built-in iSights flashes in use -- I don't think they can defeat it in software); sending all this across the Internet to Orbicule. It reminds me a lot of location tracking tools for cellphones, initially developed to track commercial fleets, but also useful to keep tabs on children, spy on spouses, and track government targets.

All that said, it's undoubtedly cool technology and a useful service, but I'm too uncomfortable to use it -- Orbicule's How it works page says "Undercover can not be disabled by the thief.", which raises my suspicions further.

Orbicule promises that Undercover doesn't emit any information unless the Mac is logged as stolen. This assumes you trust Orbicule's assurance, you and Orbicule trust Orbicule's programmers, and that your Mac doesn't get accidentally added to their list of stolen computers.

I hope no plain criminals get the source (or just the inspiration) and use it to spy on Mac users more effectively...