More information can be found here.
The current “ransomware” campaign uses a novel approach to extort money from naive Internet users. Malware from cybercriminals infects personal computers by claiming to be a genuine Windows update. Once installed, this malware encrypts data on the hard drive and displays a message (see Figure 1) in German that translates to “Your system has been infected with a Windows Trojan encryption due to visiting pages with pornographic content and your data files are encrypted with AES 256-bit encryption algorithm” and asks the victim to pay 100 euros via a Paysafe or Ukash voucher number. These malware binaries spread through spam emails.
Edited by Andrew, 01 June 2012 - 03:25 PM.
Mod Edit: Snipped - AA