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.
Comment:
This is a rogue security application that is installed via fake codecs and/or a BHO in order to scare users into purchasing the full product.
Screenshots:
IE Defender generates fake alerts about the victim's system security in order to promote their product.
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