The linux system is different and so the threats are different. You still need to use a firewall to protect your services from the internet. While there isn't the virus threat, you still have to worry about a hacker breaking into your system and gaining root access. If that happen's, it's pretty much game over because the hacker might have replaced commands which you use with his own versions.
Scanning for open ports, checking for root kits, suid programs and world writable files are what you do instead of virus scanning and defragging.
Some malware attack applications such as real player. You still need to keep on top of installing security updates. All systems, even cisco routers, need to be updated if an exploit is found.
quote from Okie:
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2.A. i have not seen any Linux spyware, since Linux is open source with lots of eyes looking at the code
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Some people would argue that because the source is open, it is easier for hackers to discover potential exploits. However, because it is open, it enables many more eyes to find them and repair them. So, because the process is proactive instead of reactive, you have fewer unresolved exploits with open source after a time.