eWEEK has reported a new trojan which is using the Windows Live/MSN Messenger platform to grow a botnet by hundreds of infected PCs per hour, adding VMs to the mix as well.
The Trojan is an IRC bot sends itself in a compressed zip file with two names. One of the names includes the word "pics" as a double extension executable—a name generally used by scanners and digital cameras: for example, DSC00432.jpg.exe. The Trojan is also contained in a .zip file with the name "images" as a .pif executable—for example, IMG34814.pif.
http://www.eweek.com/article2/0,1895,2218894,00.asp
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