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Is this a fake security alert?

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I am running Windows XP and I have McAfee Anti Virus installed on my Dell Latitude D610 laptop.

I cannot access interner explorer or Outlook Express. When clicking the icon a warning comes up instead of my home pages - Internet Explorer Warning 'visiting this website may harm your computer'.

A shield has appeared in the bottom screen tool bar and a balloon from the shield reads Windows Security Alert. Windows reports computer infected. Antivirus software helps to protect your computer. Click to scan.

There is another warning balloon that appears on screen - Antivirus software Alert - Infiltration alert. Computer being attacked by internet virus. Details -, Port 14725. Attacked port 58144. Threat is BankerFox A. Do you want to buy? Y/N.

When I have tried to go into internet settings or internet safety I receive another warning - Security Warning. Application cannot be executed. The file mcupdate.exe is infected. Do youu want to activate anitivirus software. Y/N.

I have run a full scan with McAfee and there is no report on issues, threats, viruses etc...the computer is clean.

Please can you help and advise how I can overcome this issue.

Many thanks.
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