The Internet has developed to give many benefits to mankind. The access to information being one of the most important. Worms cause major security threats to the Internet. Worms are software components that are capable of infecting a computer and then using that computer to infect another computer. The cycle is repeated, and the population of worm-infected computers grows rapidly. Smart worms cause most important security threats to the Internet. The ability of smart worms spread in an automated fashion and can flood the internet in a very short time. A new class of smart worms, referred to as Camouflaging worm (C-Worm in short). C-worm is different from traditional worm. C-worm intelligently manipulate its scan traffic volume over time. Motivated by observations, we designed a novel Spectrum Based detection Scheme to detect the C-worm. This scheme uses Power Spectral Density (PSD) distribution of the scan traffic volume and its corresponding Spectral Flatness Measure (SFM) to distinguish the C-worm traffic from background traffic. This scheme is effectively detecting not only the C-worm but traditional worms as well. The goal is to prevent, detect and delete the smart worms as well as traditional worms.