Here's an update on some of the malware infection problems going on right now in Android-land. Google recently released the "Android Market Security Tool 2011" to fix the DroidDream infection, but users are advised NOT to download it. The tool is already being pushed out automatically by Google to eliminate the DroidDream malicious software.
The other reason not to download the "Android Market Security Tool" is because there is a fake version on the secondary Android markets. The version on the Google Android Market is clean, but the fake version on the alternate markets is infected with viruses itself.
It's important to note that the fix does not eliminate the vulnerability exploit that allowed the DroidDream to infect Android phones. All it does is remove the infection. Only Android version 2.2.2 or above, fixes the vulnerability. So, it is up to the phone manufacturers and carriers to get their phones ready for that update. These leaves many of us with older smartphones 'out in the cold' regarding our vulnerabilities to potential future exploits.
I just wanted to give everyone a heads-up about this one, since the 'bad guys' are really getting insidious and crafty. Most of you guys are smart and cautious enough not to fall for these tricks, but we need to spread the word on this kind of stuff to protect each other. As always, do research and check permissions on any app you download.
Source: Phandroid and PC World