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How to remove FakeAlert virus?
What is FakeAlert virus?
Discovered on 14th November 2008, FakeAlert-BF.dr is a trojan that displays misleading alerts to persuade the user into buying a product to "repair" malware problems. This trojan may masquerade its malicious behavior, and victims are likely to have installed it thinking it is an antivirus program.
Aliases
Characteristics of Fake Alert virus
Trojans do not self-replicate. They spread manually, often under the premise that the executable is something beneficial. Trojans may also be received as a result of poor security practices, or un-patched machines and vulnerable systems. Distribution channels include IRC, peer-to-peer networks, email, newsgroup postings, etc.
The trojan pretends to be running an exaggerated scan on the machine and generate false detection alerts as shown below. This is done to persuade the user into purchasing a full version of Antivirus software “Rapid Antivirus 2.7” to clean the malware that the trojan falsely detected.
It shows legit files being detected as Trojan, Spyware, and Worm as shown below:

If you click on leave button, following window with some warning message is displayed:

On clicking Get Full Version of Rapid Antivirus Now!, it connects to www.rapidantivirus.com and displays following subscription page:

How does it affect your PC?
On execution, malware.exe creates a folder “Rapid Antivirus” and drops two executables at the following location(s):
loader[malware].exe creates a hidden batch script .bat in the same folder which forcefully delete itself and loader[malware].exe.
It also creates two DLL files and its copy at the following location(s):
It creates following mutex:
“Rapid Antivirus_AppManager_server_mutex”
To start at system startup it adds following entries into the registry:
HKEY_CURRENT_USER\SOFTWARE\Microsoft\Windows\CurrentVersion\Run\loader[malware].exe = “%SYSTEM32%\loader[malware].exe”
HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows\CurrentVersion\Run\loader[malware].exe = “%SYSTEM32%\loader[malware].exe”
How to remove FakeAlert virus?
A combination of the latest DATs and the Engine will be able to detect and remove this threat. The recommendation is that users should not trust seemingly familiar or safe file icons, particularly when received via P2P clients, IRC, email or other media where users can share files.