what virtualization can and cannot do in an anti-malware context

there seems to be some mismatched expectations about the protective capabilities of keeping untrusted behaviours/applications/etc confined to a virtual machine... essentially what we're talking about here is a sandbox for untrusted things like web browsing and email... the general idea is that if you can keep the bad stuff from the internet away from your physical system and confidential information then you should be fine... unfortunately it's not that simple...

the idea of the sandbox is to create a barrier separating 2 environments, one environment (the host system) containing important data and one (the sandbox) containing only things you can easily replace... while it is true that malware that gets onto the virtual machine probably won't be able to get to your physical machine (unless you move it to the physical machine yourself or in the unlikely event that it exploits a vulnerability in the virtual machine that allows it to escape), what isn't true is the assumption that you don't have to worry about malware and other security threats anymore because you're protected...

consider, for example, the scenario where adware gets installed on the virtual machine - will the separation stop the ads from reaching your eyeballs? no... and if a worm gets onto your virtual machine, will the barrier that protects your physical machine stop the worm from spewing back to the rest of the internet? no... and if you get a keylogger or password stealer or some other sort of spyware in your virtual machine, does the fact that it's in a sandbox stop you from entering or accessing sensitive information like your bank account credentials or your credit card number? no... does a virtual machine stop you from visiting a phishing site? no...

virtual machine based sandboxes are great for testing malware as well as other sorts of software because in a testing context you can enforce the separation of the virtual environment from any sensitive data and because a virtual machine is easy to restore to a previous state (simply by restoring a copy of the virtual machine made when it was in that state)... operating in a sandbox, on the other hand, makes it quite improbable that you can keep sensitive data separate from the sandbox (because malware and sensitive data travel over many of the same channels) and restoring the VM to a previous state does get rid of the malware but does not undo the damage done by any sensitive data that may have been leaked by the malware (you can't put the genie back in the bottle)...

in an operating environment you can't simply treat malware and related threats as a system recovery problem - flattening and rebuilding (whether done to the physical machine or the VM) may get rid of the malware but it won't undo the malware's consequences... recovering from the consequences of malware is a much more complicated problem which is one of the reasons it's preferable to prevent them in the first place... since sandboxes don't prevent malware, only the passage of malware from the sandbox to the host system, sandboxes won't protect the user from the consequences of malware... that means in an operating environment that includes a sandbox, the sandbox will require protective software just the same as if there were no sandbox at all - and virtual machines are notorious for being noticeably slower than their physical counterparts so that anti-malware software that slows down your physical machine is going to make your virtual machine even slower...

for all the things it can't do, however, a virtual machine based sandbox is easier to recover than the host system, but is it significantly easier than restoring a physical system from a previous image? my guess would be no, but that's really for the computer operator/administrator to decide...