"Ransomware" scam in Russia

Russian police have launched an investigation into a criminal gang that installed malicious "ransomware" programs on thousands of PCs and then forced victims to send SMS messages in order to unlock their PCs. According to local reports that scam may have netted Russian criminals millions of dollars.

Russian police seized computer equipment and detained a Russian "crime family" in connection with the crime. 10 people are expected to be charged. Tens of thousands victims affected by the scam live in Russia, Ukraine, Belarus and Moldova.

The scam ring worked this way: they used news sites to spread their malicious software, known as WinLock, which disables certain Windows components, rendering the PC unusable, and then displays pornographic images.

To unlock the code, victims must send SMS messages that cost between 300 rubles (US$9.72) and 1,000 rubles.

The scam is "very popular" in countries such as Russia at the moment, antivirus vendor Kaspersky Lab said in an e-mailed statement.