Android Malware Creeps Into Cellphone Bills

Smartphones are meant to be headache-free compared with old-school computers. But malicious software written for Android devices can be even sneakier than the malware that invaded PCs.

The most prevalent form of Android malware scrapes small amounts of money from smartphone owners by making secret charges to their phone bills, according to a report published by Lookout, a mobile security company in San Francisco. This type of malware is called toll fraud, and it has the potential to fool plenty of people who don’t pay close attention to their phone bills every month.

Here’s how toll fraud works: A person downloads a malicious app. The app invisibly sends a text message to a service that uses a middleman service that has a relationship with the malware author. A confirmation message is sent back to the malware, which blocks it from being seen by the customer and confirms the charge. The charge goes to the user’s bill, and the carrier takes its cut and gives the rest of the money to the service and the middleman, and thus the malware author.

In its report, Lookout estimates that from the beginning of 2012 to the end of 2013, 18 million Android users may encounter malware. About 72 percent of the malware that Lookout detected this year was toll fraud, and the company expects this number to grow, because even though the process is complex, the code isn’t difficult to replicate. The company advised cellphone owners to regularly check their bills for suspicious charges.

http://bits.blogs.nytimes.com/2012/12/13/lookout-toll-fraud/?ref=technology