Antivirus maker NetQin found to be infecting and defrauding its users

NetQin Feiliu virus scam
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.
Steven Millward
About the Blogger

Six years after arriving in China to 'check it out', Steven has decided to stay longer, and is hooked on the fast-changing dynamic of mainland China. A freelance editor, lifestyle magazine writer and tech blogger, he can also be found on twitter (as @SirSteven) discussing media, tech and music. You can email him - sino...@gmail.com (< click on the first half of the address to reveal it all) - with any tips, queries or feedback. You might also like to check out the CNET Asia fanpage on Facebook.

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all antivirus company do such things as that. but to be caught? maybe they are just overdoing it.

Posted by betraykuroro
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weird.. stranger stories from the Etherworld why would a company who would profit more from nurturing a good business partnership with the likes of Nokia or SE, allow itself to get caught infecting virus into other customers?? The Nokia deal alone is worth tens of millions of dollars. every quarter. plus millions more in paid apps purchase. Besides, its an urban legend that anti-virus companies are the same ones that also create viruses which ruin their customers software -- less virus, less money; more virus, more money. That is how the anti-virus business works...

Posted by CecilleV
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agreed!

Posted by tzechyechai
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I've heard rumours of such things happening with antivirus companies, but to get caught is, wow.. It's quite dumb to do something like that when you've already got contracts with Nokia and operators, no?

Posted by rotijohn
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