Which is more secure? Firefox or Internet Explorer?
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This is a debate that has gone back and forth since the day Firefox released and was supposed to sport less vulnerabilities than IE. Today, while browsing on Bink.nu, I saw a link to an article by Jeff Jones, where he discusses actual numbers and types of vulnerabilities in each browser. Surprisingly, Internet Explorer actually looks better on paper when it comes to simple numbers of high and medium vulnerabilities.
In contrast to specifics in this report, there is still a significant difference in the public negativity when a vulnerability is found in Internet Explorer as opposed to Firefox. Is it the fact that IE is still number one on desktops around the world? Is it that Firefox is considered a darling of the open-source community? Who knows, maybe it is both.
One thing is for sure, the proliferation of malware and spyware for your home computer are currently a much bigger problem for Internet Explorer. I think it is only a matter of time before Firefox becomes a larger target. As the popularity of this browser continues to grow, so will the desire for criminals to find ways to exploit it.
In the end, whichever browser you choose, the key is being aware of your activities on the internet. Keep your computer protected from viruses. This is easy nowadays, and there are even free options that provide basic protection. Know what you are downloading. Free games and other applications can be loaded with spyware or malware. Do some research before you download. Better yet, avoid downloading it if you do not really need it.
UPDATE: Here is a rebuttal by a former Microsoft employee, who now works for Mozilla (maker of Firefox). Read it here.

while Jeff Jones is still a Microsoft Employee.