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Steven Millward, China

Comments (4)Antivirus maker NetQin found to be infecting and defrauding its users
Mar 22, 2011
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An exposé by Chinese State-TV claims to have caught the antivirus software firm NetQin in the fraudulent act of deliberately infecting users' mobile phones, and then charging for an update to clean the virus.

NetQin had only days ago filed for an IPO on the New York Stock Exchange--but that proposed listing must be in doubt, after allegedly being caught red-handed on national television.

It worked like this: The NetQin antivirus app would be installed by someone on their mobile, and the app would then covertly install a (malware-riden?) download tool app named Feiliu; the NetQin app would then report a virus to the mobile user, and request a 2RMB (US$0.30) update in order to quash that malware and uninstall Feiliu. The NetQin app would also--goes the claim--uninstall any other anti-virus app from that users' phone.

This affects only JME phones: The Java-based OS used on feature phones made by the likes of Nokia and Sony Ericsson. Android users who have NetQin are apparently fine.

The State-TV sting also exposed that NetQin has invested money in the company that makes the Feiliu app, and that the CEOs of the two companies (NetQin's Lin Yu is pictured, top) are classmates. Needless to say, alarm bells have been ringing among Chinese Netizens.

The repercussions have begun already: All three Chinese mobile telcos have banned NetQin from their respective mobile app stores, and Nokia has terminated its cooperation with the firm, that saw NetQin being preinstalled on various Nokia models in China.

http://asia.cnet.com/blogs/antivirus-maker-netqin-found-to-be-infecting-and-defrauding-its-users-62207972.htm