A new malicious worm squirming through America Online Inc.'s AIM network has the ability to carry on an instant messaging conversation with potential victims.

Researchers at IMLogic Inc.'s Threat Center spotted the new threat and warned that virus writers are continuing to push the social engineering envelope to trick computer users into downloading nasty malware programs.

The newest worm, identified as IM.Myspace04.AIM, is coded to chat and persuade the victim to click on a malicious URL embedded in the IM message. If the first attempt at infection is unsuccessful and the victim replies to doubt the legitimacy of the link being sent, the worm replies with the following message: "lol no its not its a virus."

Like other IM worms spreading over AOL's instant messaging network, the bot uses an infected user's buddy list to propagate itself, carrying on a conversation with new victims without the infected user's knowledge.

"This sophisticated bot attack is programmed such that infected users cannot see the messages the worm is sending on their behalf. When recipients of the malicious message reply to the infected user, the bot running on the infected machine sends follow-up messages," IMlogic said in an advisory.