V3.co.uk says the attack seems to be related to a number of out-of-band patches that Microsoft has recently released. The scam attempts to coerce users into handing over money to deal with a "virus problem" that does not exist.
Webroot threat researcher Andrew Brandt says the scam is cleverly crafted:
The spy, which serves as nothing more than a vehicle for a fake product called Antimalware Defender, so closely resembles a Windows Update installation dialogue that some members of our threat research team had to pause and look carefully at the dialogue box before deciding that it is, in fact, a big fat hoax.
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