Could be a smitfraud infection which is responsible for using misleading advertising, downloading rogue security products, changing the Windows Desktop and infecting system files. The Trojan uses bogus security warnings and alerts to indicate that your computer is infected with spyware, downloads and installs programs that purport to scan for spyware and uses false scan reports as a scare tactic to goad you into purchasing one of several rogue anti-spyware programs. Examples of these system infecting rogue programs include SpywareQuake, SpyFalcon, VirusBursters, Antispyware Soldier, SpyHeal, PestTrap and SpywareSheriff.
If your fake alert is related to one of these types of rogue programs and if your using Win XP or 2000, follow the generic instructions for using
SmitfraudFix in BC's "
How to remove the Smitfraud/Generic Zlob"
I am also having the same issue with a "fake alert" popping up in my system tray which keeps directing me to download "spy dawn". My friends told me to run ad-aware & spyware bot and i also just downloaded avg anti-spyware. the scans find infected files and i quarantine them but the pop up doesn't go away unless i restart my computer. But if I were to restart again it comes right back! I'd really appreciate any help with this.