These are usually anti-spyware or security software applications that use various forms of deception and/or unethical means or show a history of negligent false positives to goad the end user to make a purchase.
In some cases these applications maybe downloaded with some form of unwanted software at which point the rogue application is offered to the customer as a way to remove the unwanted software.
WareOut claims: " ..is the Latest and Most Advanced Spyware Detection and Removal application on the Internet. We will prevent anyone from "spying" on your Internet activites."
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We monitored the process list while executing this program. It dropped several bogus entries in the Auto starter location of the registry then reported them as spyware. In fact, everything listed in HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows\CurrentVersion\Run was reported as spyware. The files referenced from the auto starting value simply did not exist on the test machines. Spywareguide also monitored this applications activity while it ran a spyware scan and the only activity was dropping bogus entries. Furthermore, when we deleted the software key in HKEY/LOCALMACHINE it was regenerated with a fresh new list of randomly generated Autostarting values.
When Spywareguide ran a scan with the application it picked up a list of everything in HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows\CurrentVersion\Run and reported it as being spyware. The test machine was a fresh image. Further investigation via Google correlated this program with about:blank and or CWS variant. Process list attached.