http://www.securelist.com/en/blog/6211/Rogueware_campaign_targeting_Mac_users
It's not a virus; it's Trojan, which works by trying to scare users into giving their password to install it. It can't do anything if you don't give it your password.
To remove:
First, restart in Safe Boot by holding the Shift key down at the chime. Or, alternatively, open Activity Monitor in Utilities, set to Active Processes, find the program and force quit it. This will keep it from running, but only temporarily, so you can remove it.
1. Drag the MacSecurity program -- or whatever it's called; it keeps using different names -- MAC Defender, MacProtector, MacKeeper 911, Apple Security Center, Apple Web Security -- it's not hard to imagine the new names it will be using in the coming days -- (installed in the Applications folder by default) to the Trash. Empty the Trash.
2. Remove item of same name from the Login Items for your Account in the OS X System Preferences (if it exists).
3. Go to your Home folder Library>Preferences and, if you find it, delete com.alppe.spav.plist. Look also in Application Support (may not be anything there, but check just in case) and search for any files with one of the above names and trash them. Empty the trash.
4. If you use Safari, go to Preferences>General and UNCHECK "Open "safe" files after downloading. Keep that unchecked.
If you paid for it, they have your credit card #. Call your credit card and dispute the charges. Also, cancel the card ASAP.
As a precaution, change your password.