Sophos said:Thousands of Android devices are thought to have been infected by a strain of Chinese malware which sends costly SMS messages to earn cash for its creators.
Some reports have claimed that over 500,000 Android devices are infected with the malware, which is detected by Sophos's free Android anti-virus as Andr/SMSZomb-A.
Users are tricked into believing that they are installing GIF wallpaper onto their Android device, and a provocative message is shown suggesting that a secondary app is installed that would allow permanent use of the images.
Clearly, this threat is only likely to be successful amongst Chinese-speaking Android users. But, of course, there are plenty of them!
If you have configured your Android device to only allow installation of apps from a legitimate Android Marketplace then a warning will be displayed - giving you the opportunity to still avoid infection.
Read more: http://nakedsecurity.sophos.com/2012/08/21/nude-wallpaper-apps-infect-thousands-of-android-devices-with-malware/