Proxy server virus: (127.0.0.1 port 8118)

Started having trouble with skype not connecting then Dropbox as well suggestions that it was the firewall were proved wrong when it was turned off and the problem continued. I canme across this reference “Proxy server virus: (127.0.0.1 port 8118)”.
Does anyone know about this and does avast protect against it please?
Thought I would ask before starting to look elsewhere.
I am using 17.8.2318, Initially when I tried to check Avast update it returned an unknown problem with connection and when I checked Avast Lan settings I found they were actually set to 127.0.0.1 and port 8118. I changed the connection to direct connection and seemed to resolve the issue but it seems like I have three infected programmes including Avast - any suggestions while my virus database is updating

Cheers,
Vic

If you want help, follow instructions and attach requested logs

https://forum.avast.com/index.php?topic=194892.0

Cheers Pondus but I have resolved the issue now. My main concern is that it got into Avast in the first place and amended the connection details. I have always had confidence in Avast Internet Security and am afraid it has taken a bit of a dint now. With the connection re-established all the Avast updates came down as normal, I can only hope they have plugged the hole and resolved the issues.

No security program have 100% detection or zero false positive

You may still have what changed the proxy settings so I recomend attaching the requested logs