Understanding How Scareware Works and Where It Comes From

Scareware is a malicious program developed by cyber criminals that are high trained in computer programming.  Depending upon what the program is designed to do, scareware is just as the name implies, it scares you into revealing your personal or financial information, downloading malicious software that appears legitimate, or installing any other applications that instill fear or worry in the end user.

You may have experienced scareware in the past or you may not have heard of it.  Regardless, as a PC user it is helpful for you to know how scareware works and where it comes from so you can properly protect your data and daily computing activities against unauthorized access.

How Scareware Works

Scareware is software that is downloaded on your PC without your consent and sometimes without your knowledge.  It often makes its presence known by appearing on your PC screen as a legitimate software offer when in reality, it is potentially dangerous software.  If you are not aware of how scareware works, you can easily be tricked into downloading it on your PC.  Here is a typical scenario on how scareware works using a fake virus alert as an example:

• Warning Sign That Invokes Fear: You have a legitimate antivirus program and anti-malware application installed and you are using your PC.  As you are working online, you inadvertently click on a link, website, or any other type of online application and the next thing you know, a pop-up alert that resembles your antivirus program alert appears seeming out of nowhere and it says something similar to:  “Warning! Your computer is infected with 57 viruses!  Click here to start a free scan for help with removing the viruses.”
• What Happens When You Click: The unsuspecting user’s first reaction is panic and so they click on the pop-up thinking that this will take care of the viruses.  As soon as you click there are a few things that may occur:  1) You will receive a confirmation of fake viruses that are supposedly present on your PC and then you are prompted to enter your credit card information to get the full version of the software to remove the viruses or, 2) As soon as you click, the program downloads spyware to your PC without your knowledge with the intent to steal your password, financial information, critical data related to important tasks, and any other type of sensitive information.

The truth is that your PC does not have any viruses and your antivirus and anti-malware program are working fine.  This type of scareware is basically a fake virus alert with ulterior criminal acts in mind.

Once the criminal has obtained your financial information or has gained access to your PC, the information that is collected is forwarded to a remote server where cyber criminals harvest it for illegal use such as identity theft or to generate profits by selling your information on the black market.

Where Scareware Comes From

The origin of scareware comes from criminals that are hired through organized crime or other sources to program malicious software to steal confidential data and information.  The software that is programmed to perform the malicious act is often hidden in website links, ActiveX controls, pop-up advertisements, banner ads, images, icons, and any other applications that people usually click on when they are browsing the Internet.  Once you click, the software is automatically downloaded onto your PC to perform whatever malicious act it is designed to do.

Not too long ago, the FBI seized a number of computers and servers which were being used to run a “scareware” scheme which netted the criminals more than $73 million dollars.  The scheme was designed to trick more than 950,000 unsuspecting PC users into submitting their credit card information to purchase fake antivirus software in order to solve an issue which actually didn’t exist. 

Although the above scenario did not prevent scareware scams altogether, we have mentioned the case here to provide you with an idea of how prevalent scareware can be, so you can take the steps necessary to protect your PC data from loss or theft.

What You Should Do

As a PC user you should educate yourself on how cyber criminals work and then learn how to protect your PC from scareware and data loss.  If you are not knowledgeable in this area, you may want to call on the expertise of an IT professional that can provide you with the direction you need to protect your PC from unauthorized access.

David Molnar

Dave's Computers - Computer Repair & Data Recovery Center

www.davescomputersinc.com