Lookout Mobile Security just published their State of Mobile Security 2012 report wherein trends in mobile malware were discussed.

The report looked at key factors that contribute to the growing number of malware infecting devices, specifically those using the Android platform.  The top factors fueling malware creation are: money, the evolution of mobile devices, privacy issues, geographic location and the ever diversifying malware distribution techniques.

Mo’ money, mo’ money, mo’ money

Money is important to everyone.  We work for money so that we can buy the things we need in order to survive and make our lives comfortable.  And this reason is also what drives malicious authors to make malware that generates quite a lot of cash.  That’s why there’s a notable rise in the prevalence of Toll Fraud malware – a type of malware designed to make a profit by billing an unsuspecting victim through premium SMS services.  One type of this Toll Fraud malware is FakeInst, also known as RuSMSMarket, OpFake, Fakebrows, or FakeWAM, which pretends to act like an installer of a legitimate popular app like the Opera Browser but in most cases, they don’t actually install anything.

Evolution of mobile devices

The evolution of mobile devices and mobile malware go hand in hand.  The more complex a device becomes, the more intrigued malware authors get, so they study them carefully to exploit any weaknesses.

The devices usually aren’t the ones with the problem, but the attitude of users.  Android devices have Google Play as their go-to market when they want to download an app, but most people look for free versions of popular paid apps, turning to shady sites for downloads.  And this is where things go wrong.  Apps downloaded on unofficial sites are usually shady or contain a lot of in-app advertisements.  Those in-app ads serve as the gateway for malware.

Also, mobile devices are no longer just a tool for communicating, they are now vital parts of our lives, especially with the emergence of mobile banking.  A lot of people now tie their credit cards to their mobile phones to make shopping easier, without realizing how risky this act is.  It’s like waving a diamond necklace in front of a thief.

“Trust is one of the most important factors influencing whether people will continue to use mobile devices to their full potential,” said Kevin Mahaffey, CTO and co-founder of Lookout. “As smartphones and tablets have come to house our personal data, access financial information, and power practically all of our communications, there are more incentives for attackers to strike. Our mission is to identify and solve emerging threats so people around the world can continue to trust their mobile devices.”

Infect by region

According to Lookout’s report, the chances of a given device being infected by malware or spyware heavily depends on the geographic location of the device.  In Japan, about .04 percent are infected with malware, which is minute in comparison to the 41.6% in Russia.
The reason Toll Fraud malware is predominant in Eastern Europe and Russia is because SMS regulation in those areas are pretty lax.  Safeguards such as double-confirmation subscriptions are not standardized across geographic regions–that’s why these areas are the perfect targets for Toll Fraud malware.