Fake Windows Update

I recently became aware of a hoax that was running on my computer. It is a false microsoft update program. It installs itself from some website (dont know where) and creates an icon in the start menu that looks like a 'my computer' icon with a down-arrow on it. It also creates a false windows update icon in the system tray, and when used, takes you to an almost PERFECT replica of microsoft's website. when you download the updates, anti-virus software goes nuts, and Microsoft Anti-Spyware detects and quarantines it.
Has anyone else encountered this?

(PS. This is not the e-mail hoax that went out some time ago. this is one that secretly downloads itself from a website or is possibly bundled with something...)

Yes I myself have gotten something similar to this claiming a windows update program, but it was a trojan. Many trojans and spyware use programs they know even the computer newbies might now about, such as a microsoft update, and place spyware, trojan servers and viruses into the files.

Also MS Updates do not download on your computer for later installation, they simply download THEN install immediantly on the Microsoft Update site. So be cautious when coming across such programs.

Do you know yet how it got on your computer?

This would be interesting to follow up - does anyone have any info on this? The only info I could find was related to the fake microsoft update emails that were circulating earlier this year.

http://www.vnunet.com/vnunet/news/2145730/virus-threats-spread-web

it is from a hacker group aexodus and was an old file on hackpalace.com but you wannabe punks use these and they just get anoying because they were designed in persisting until domination

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