Trojan kidnaps files for ransom

Security experts have discovered a new Trojan horse that attempts to extort a ransom of $300 (£175) from computer users after taking their computer data hostage.

According to Sophos, the Zippo.A Trojan horse searches for files such as Word documents, databases and spreadsheets, and moves them into password-encrypted ZIP files.

Then, it creates another file informing the affected user on how they need to pay $300 to recover their data.

Graham Cluley, senior technology consultant for Sophos, said: "Now most of the viruses and Trojan horses we see are being written with the intention of making money from innocent internet users. The attacks are becoming more organised and more malicious, which is why every computer needs to be properly defended."

According to Sophos, the password needed to unlock the ZIP file is: 'C:\Program Files\Microsoft Visual Studio\VC98'.

Security experts advice computer users to make regular backups and to protect their computers with a secure solution that tackles virus, spyware and spam threats.