Scareware is a form of malware which uses social engineering to cause shock, anxiety, or the perception of a threat in order to manipulate users into buying unwanted software (or other products). Scareware is part of a class of Malware that includes rogue security software, ransomware and other scam software that tricks users into believing their computer is infected with a Computer virus, then suggests that they download and pay for fake antivirus software to remove it. Usually the virus is fictional and the software is non-functional or malware itself. 'Scareware' scams trick searchers . BBC News (2009-03-23). Retrieved on 2009-03-23. 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 585% increase in scareware programs.
The "scareware" label can also apply to any application or virus which pranks users with intent to cause anxiety or panic.
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 with advertisements such as these are often considered scareware. Serious scareware applications qualify as rogue software.
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 specially designed to look like they come from the user's operating system when they are actually a webpage.
A 2010 study by Google found 11,000 domains hosting fake anti-virus software, accounting for 50% of all malware delivered via internet advertising.
Starting on March 29, 2011, more than 1.5 million web sites around the world have been infected by the LizaMoon SQL injection attack spread by scareware.
Research by Google discovered that scareware was using some of its servers to check for internet connectivity. The data suggested that up to a million machines were infected with scareware. The company has placed a warning in the search results for users whose computers appear to be infected.
Another example of scareware is Smart Fortress. This site scares the victim into thinking they have many viruses on their computer and asks them to buy a professional service.
SpySheriff exemplifies spyware and scareware: it purports to remove spyware, but is actually a piece of spyware itself, often accompanying SmitFraud infections. spywarewarrior.com filed under "Brave Sentry." Other antispyware scareware may be promoted using a phishing scam.
In October 2008, Microsoft and the Washington attorney general filed a lawsuit against two Texas firms, Branch Software and Alpha Red, producers of the Registry Cleaner XP scareware. The lawsuit alleges that the company sent incessant pop-ups resembling system warnings to consumers' personal computers stating "CRITICAL ERROR MESSAGE! - REGISTRY DAMAGED AND CORRUPTED", before instructing users to visit a web site to download Registry Cleaner XP at a cost of $39.95.
On December 2, 2008, the U.S. Federal Trade Commission ("FTC") filed a Complaint in federal court against Innovative Marketing, Inc., ByteHosting Internet Services, LLC, as well as individuals Sam Jain, Daniel Sundin, James Reno, Marc D’Souza, and Kristy Ross. The Complaint also listed Maurice D’Souza as a Relief Defendant, alleged that he held proceeds of wrongful conduct but not accusing him of violating any law. The FTC alleged that the other Defendants violated the FTC Act by deceptively marketing software, including WinFixer, WinAntivirus, DriveCleaner, ErrorSafe, and XP Antivirus. According to the complaint, the Defendants falsely represented that scans of a consumer's computer showed that it had been compromised or infected and then offered to sell software to fix the alleged problems.
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