An update to AVG and iTunes overnight has lead the popular free anti-virus software to believe iTunes is a virus. This is not the case, it is a false positive and there is nothing to be worried about.
There is currently no time frame to fix the issue with both Apple and AVG yet to comment on what may have caused this problem. The root of the issue more than likely lies with AVG; AVG has a history of not playing nicely with iTunes.
At this stage there is a workaround to get AVG and iTunes playing nicely again.
1. Open AVG
2. Select the Resident Shield
3. Click Manage Exceptions
4. Click Add Path and add the following locations:
C:\Program Files\iTunes\
C:\Program Files\iPod\
C:\Program Files\Apple Software Update
5. Click Apply and Save.
Anti-virus False positives occur when a pattern of code in the file matches the same pattern contained in a virus signature or definition. This can occur due to a faulty signature or it can occur after improper disinfection by the same or different anti-virus scanner.
False positives can be more than just annoying. Repeated warnings that are erroneous cause the same effect as the boy who cried wolf. If too many false positives occur, when a legitimate warning is presented, users may disregard it. In other cases, a false positive can cause legitimate files to be deleted, causing the operating system or program to no longer function properly. (Source: antivirus.about.com)
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