The Lavasoft Support Forums have been deluged with daily cries of help from victims of the “Smitfraud” desktop hijackers that are using fake codec to infect their prey.

Watch out for the Zlob Trojan that poses as a codec needed to view a video, then installs a fake virus and urges its victims to download a rogue anti-spyware program to remove it. Lavasoft has also confirmed that this malware takes advantage of unpatched systems using exploits on web pages. Visit Microsoft Update to ensure that ALL of your critical Windows security pages are updated.

Other victims have been infected by a fake e-card greeting, or even a spoofed e-mail that claims to be Windows Update (Microsoft never sends updates via e-mail). Still more unassuming victims received an e-mail asking them to open a link to see the message (these can be fake e-mails, intended only to infect), or even a link from your ‘buddy’ in instant messages – but don’t trust it if you aren’t expecting it. Even your buddy could be infected without his/her knowledge and the virus on their computer is sending you the link with one purpose, and one purpose only – to infect you!

A few of the fake codecs out there include:
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News source: Lavasoft News