There's a new malware program for Androids on the prowl, and it's a nasty one. The malware "app" is a trojan called "DroidKungFu" and it allows hackers a backdoor entrance to your handset. With access the hacker can get your personal data, but can also gain full remote control of your Android, to make your phone do anything they want. This is evil stuff to be sure! It was found by some North Carolina State University researchers buried in some apps on Chinese forums and third-party software sites. Here's a quick quote from the PhanDroid article with some good advice,
Researchers at North Carolina State University discovered the malware, which has gone undetected by mobile anti-virus software thus far. The good news is you can do a lot to prevent yourself from picking up the bad apps. There is no word they have hit the official Android Market yet, so keep an eye on what you are downloading and only download apps from trusted sources and you’re already off to a good start.
Stay vigilant!

Source: PhanDroid