What type of malware embeds itself into applications and can collect user data?

The type of malware that embeds itself into applications and can collect user data is generally recognized as spyware. This form of malware is designed specifically to monitor user activity and gather sensitive information without the user's consent. Spyware infiltrates applications and operating systems, often disguising itself as legitimate software to trick users into installation.

Spyware can track various forms of data, including browsing habits, login credentials, and personal information, sending this data back to the attacker. Given its purpose of data collection, spyware is particularly harmful because it can operate without the user's awareness, thereby compromising privacy and security.

In contrast, adware primarily generates advertisements based on user behavior and does not typically embed itself into other applications for the purpose of data collection. Botnets refer to networks of compromised computers that can perform a variety of malicious actions, such as launching distributed denial-of-service attacks, rather than specifically focusing on data collection. Compromising malware is a broad term that may include various types of malicious software but does not specifically denote the behavior of embedding in applications for the purpose of collecting user data.

Therefore, the characterization of spyware accurately fits the question's criteria, making it the correct choice.