The major difference with this to something like security essentials 2010 is they are using the Microsoft name, which takes the offence to a whole new level. I doubt that Microsoft will wait too long before hitting these rouge developers hard

One thing I find scary about it is, we recommend MSE here so much, we more or less contribute to rogue develops feeling the need/want to develop fake AV software the resembles it so closely.

What they, Microsoft, can do will depend on where the developers are located. The use of the Microsoft brand name will bring into play things such as international copyright law, which tends to be far reaching and powerful.

The thing here is that they are targeting Microsoft directly - and they are attempting financial gain, so they will have accounts for the money. This takes it into standard fraud territory, Microsoft just need to follow the cash, which they have the financial ability to do. Hopefully they will consider this as a case sufficient to follow up and take at least one group of these criminals out of the ecosystem

Microsoft Security Essentials Alert Is Not Microsoft Security Essentials 1.0 or 2.0 - Softpedia

Thanks for alerting us.