'Blackmail' spyware detected

A new spyware program that lures computer users by claiming to give free access to pornographic Web content ends up "blackmailing" them into purchasing a program to clean the infection, an AFP report said.
The report said US-based Panda Software said the program called DigiKeyGen generated passwords that supposedly enabled users to access pornographic Web sites.
However, a spyware program and an alleged anti-spyware application are installed on a computer without the users' knowledge, Panda said.
It then warns users that their computers have been infected and offers them an anti-spyware program to clean the system for $50.
In a separate security warning, Sophos Labs warned that a security alert claiming to be from Microsoft was in fact a "Trojan" that stole passwords.