A newly discovered worm, pretending to be Microsoft Corp.'s Windows Genuine Advantage program, is being used by hackers to install malicious software on personal computers.

The worm, a program that spreads itself throughout an infected PC, is being sent by way of Time Warner Inc.'s AOL Instant Messenger software, said Ronald O'Brien, senior analyst at Abingdon, U.K.-based Sophos Plc.

Closely held Sophos first warned about the worm Monday.

Once installed on a PC, the worm copies itself into a Windows system folder, creates a new file displayed as "Windows Genuine Advantage Validation Notification" and becomes part of the computer's automatic startup, O'Brien said.

Hackers can use the software to gain control of the PC, grab confidential information and create denial of service attacks against targeted Web sites, according to Sophos.

"The worm is using the Genuine Advantage identity as a means of convincing users of its validity," O'Brien said from Lynnfield, Mass., where Sophos has a U.S. office.

News source: seattlepi.com