Chrome application and reinstall detected as PWS:Win32/Zbot

MSE detected win32/zbot this morning, suggesting removal. This also removed Google Chrome, and prevents it from being reinstalled. Many other users are having this problem, all starting this morning. Genuine threat, or a false positive from an error in the MSE definitions updated yesterday?

I run chrome in sandboxie.  It was blown up when I had MSE remove the threat, and I et the same threat when I try to re-download from  Google home page.

 

MSE is flagging Google Chrome as having "PWS:Win32/Zbot"  virus.
Tried removing, quarantining, then reinstalling Chrome but again flagged as virus.
What gives? Seems like a false possitive.

This happened today since update @ ~13.00

according to this thread over at google-support I'm not the only one
and it has to do with defenition version: 1.113.656.0

Any ideas? Fixes?

For more information:

http://www.google.co.uk/support/forum/p/Chrome/thread?hl=en&tid=42d6ba02d7eed070


Google Chrome running on Windows XP.  Microsoft Security Essentials alerted me of password stealing virus called PWS:Win32/Zbot and automatically removed it without my intervention; basically closed out of everything I was doing and gave me the option to restart which I did and to my surprise the Google Chrome exe program was removed from my computer only leaving behind unmapped chrome shortcuts. 

What MS Security Essentials Shows:

Category: Password Stealer

Description: This program is dangerous and captures user passwords.

Recommended action: Remove this software immediately.

Security Essentials detected programs that may compromise your privacy or damage your computer. You can still access the files that these programs use without removing them (not recommended). To access these files, select the Allow action and click Apply actions. If this option is not available, log on as administrator or ask the security administrator for help.

Items:
file:C:\Documents and Settings\User\Local Settings\Application Data\Google\Chrome\Application\chrome.exe
process:pid:1068
process:pid:1600
process:pid:2584
process:pid:2736
process:pid:4076
process:pid:452
process:pid:468

this thread:
http://www.google.com/support/forum/p/Chrome/thread?tid=13073ef7ed2ef001

http://answers.microsoft.com/en-us/protect/forum/protect_scanning/mse-detects-chrome-as-win32zbot/43435186-35be-4931-acbf-9f020b45ff66

 

Based on the above thread there may be a temporary problem with MSE and Chrome...I'm not familiar with it since I do not use Chrome but I'll be sure MSE Support is aware of your issue.

 

Thanks for reporting it.

 

 

I think the active thread is actually this one: http://www.google.com/support/forum/p/Chrome/thread?hl=en&tid=42d6ba02d7eed070

Same thing with MS Forefront.

This is a Microsoft problem.  MSE definition file 1.113.656.0 is the culprit.  Microsoft should issue a new definition file immediately with an apology.  Millions of users have been affected!