May 28, 2010

Scam Alert: Scareware

A report came out lately about the indictment of 3 scam artist who instigated an electronic fraud known as Scamware, so we might as well know what this scam is all about before we become victims ourselves.

Scareware comprises several classes of scam software with malicious payloads, or of limited or no benefit, that are sold to consumers via certain unethical marketing practices. The selling approach uses social engineering to cause shock, anxiety, or the perception of a threat, generally directed at an unsuspecting user. Some forms of spyware and adware also use scareware tactics.

A tactic frequently used by criminals involves convincing users that a virus has infected their computer, then suggesting that they download (and pay for) fake antivirus software to remove it. Usually the virus is entirely fictional and the software is non-functional or malware itself. According to the Anti-Phishing Working Group, the number of scareware packages in circulation rose from 2,850 to 9,287 in the second half of 2008. In the first half of 2009, the APWG identified a 583% increase in scareware programs.

The "scareware" label can also apply to any application or virus (not necessarily sold as above) which pranks users with intent to cause anxiety or panic.

Internet Security bloggers/writers also use the term "scareware" to describe software products that — while serving some desired purpose — also produce a lot of frivolous and alarming warnings or threat notices, most typically commercial firewall and registry cleaner software. This class of program tries to increase its perceived value by bombarding the user with constant warning messages that do not increase its effectiveness in any way. Software is packaged with a look and feel that mimics legitimate security software in order to deceive consumers.

Some websites display pop-up advertisement windows or banners with text such as: "Your computer may be infected with harmful spyware programs. Immediate removal may be required. To scan, click 'Yes' below." These websites can go as far as saying that a user's job, career, or marriage would be at risk. Products using advertisements such as these are often considered scareware. Serious scareware applications qualify as rogue software.

In recent findings some scareware is not affiliated with any other installed programs. A user can encounter a pop-up on a website indicating that their PC is infected. In some scenarios it is possible to become infected with scareware even if the user attempts to cancel the notification. These popups are especially designed to look like they come from the user's operating system when they are actually a webpage.

This is indeed a serious scam as what was describe, I believe I have meet this kind of scamware before one way or another, in a public computer I believe without a credible internet security suite, best way I guess to counter this is by buying security suite and a little bit of knowledge.

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