Ransomware: Cryzip Trojan Encrypts Files, Demands Ransom

Virus hunters have discovered a new Trojan that encrypts files on an infected computer and then demands $300 in ransom for a decryption password. The Trojan, identified as Cryzip, uses a commercial zip library to store the victim's documents inside a password-protected zip file and leaves step-by-step instructions on how to pay the ransom to retrieve the files.

It is not yet clear how the Trojan is being distributed, but security researchers say it was part of a small e-mail spam run that successfully evaded anti-virus scanners by staying below the radar. PointerSunbelt tracks a DIY Trojan-builder program. Click here to read more. While this type of attack, known as "ransomware," is not entirely new, it points to an increasing level of sophistication among online thieves who use social engineering tactics to trick victims into installing malware, said Shane Coursen, senior technical consultant at Moscow-based anti-virus vendor Kaspersky Lab.