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The malicious code known as "Gumblar" or "Troj/JSRedir-R," which infects Web sites, was first detected in March. Defying security experts' expectations, it is growing rapidly instead of dying out.
Gumblar Web attack adds new domains, steals data, and continues to propagate after infections are cleaned up, making it worse than Conficker, ScanSafe says.
Somewhere around 40,000 Web sites have apparently been infected with code that redirects visitors to sites hosting malware, according to a security firm.
Start-up launched by ex-Googlers is offering a free alert service for when sites are blacklisted for hosting malware, as well as a fee-based malware-monitoring service.