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"Rogueware is so popular among cybercriminals primarily because they do not need to steal users' personal information like passwords or account numbers in order to profit from their victims," said Luis Corrons, PandaLabs Technical Director. "By taking advantage of the fear in malware attacks, they prey upon willing buyers of their fake anti-virus software, and are finding more and more ways to get to their victims, especially as popular social networking sites and tools like Facebook and Twitter have become mainstream."

Rogueware Morphs Quickly and Proves Difficult to Detect There are approximately 200 different families of rogueware, and PandaLabs expects the variations to continue to grow. In the first quarter of 2009 alone, more new strains were created than in all of 2008. The second quarter painted an even bleaker picture, with the emergence of four times as many samples as in all of 2008. In Q309, PandaLabs estimates a rogueware total greater than the previous eighteen months combined.

The primary reason for the creation of so many variants is to avoid signature-based detection by (legitimate) antivirus programs. The use of behavioral analysis, which works well with worms and Trojans, is of limited use in this type of malware because the programs themselves do not act maliciously on computers, other than displaying false information. However, PandaLabs has started to identify more advanced malware variants that are using typical Trojan features, rootkits and other techniques to subvert virus detection technologies.

How Rogueware Business Works and Tracking the Source The report details how the rogueware business works. Not unlike a traditional business, the rogueware business model consists of two major parts: program creators and distributors. The creators are in charge of making rogue applications, providing the distribution platforms, payment gateways, and other back office services. The affiliates are in charge of distributing the scareware to as many people and as quickly as possible.

PandaLabs' research reveals that the affiliates are mostly comprised of Eastern Europeans recruited from underground hacking forums. They earn a variable amount per each install and between 50-90 percent commissions for completed sales. The PandaLabs report includes financial statements and photos from events hosted by the leaders of these organizations that are not dissimilar to corporate sales events.

To read the full report, go to: http://www.pandasecurity.com/img/enc/The%20Business%20of%20Rogueware.pdf?sitepanda=particulares For real-time updates on PandaLabs research, follow @Panda_Security, @Luis_Corrons and @lithium on Twitter.

About PandaLabs Since 1990, its mission has been to detect and eliminate new threats as rapidly as possible to offer our clients maximum security. To do so, PandaLabs has an innovative automated system that analyzes and classifies thousands of new samples a day and returns automatic verdicts (malware or goodware). This system is the basis of collective intelligence, Panda Security's new security model which can even detect malware that has evaded other security solutions.

Currently, 94% of malware detected by PandaLabs is analyzed through this system of collective intelligence. This is complemented through the work of several teams, each specialized in a specific type of malware (viruses, worms, Trojans, spyware, phishing, spam, etc), who work 24/7 to provide global coverage. This translates into more secure, simpler and more resource-friendly solutions for clients. More information is available in the PandaLabs blog: http://www.pandalabs.com For more information:

Neil Martin [email protected] Tel. 0870 243 0690