Perhaps one of the most common predictions of the last six years has
been that mobile malicious software will suddenly proliferate, driven
by widespread adoption of smartphones with advanced OSes.

None of those prognostications have really come to fruition, but it's
likely that the coming year will bring a host of new malicious
applications. Users -- while generally aware of threats aimed at their
desktop computers and laptops -- have a good chance of being caught
flat-footed with their mobile phones.

In the third quarter of this year, up to 80 million smartphones were
sold around the world, which accounted for about 20 percent of the
total number of mobile phones sold, according to statistics published
last month by analyst firm Gartner. Smartphones are Internet- capable
and therefore more vulnerable to attack than other mobile devices.

The threats against those devices are going to come in several categories:

Rogue applications:

Marketplaces for mobile applications are becoming increasingly popular
for platforms ranging from Apple's iOS and Google's Android to
Microsoft's Windows Phone 7 and Symbian. Apple maintains tight control
over its App Store, which has helped reduced rogue applications from
being offered. But bad applications for other platforms have popped
up.

In September, researchers from security vendor Fortinet discovered a
mobile component for Zeus, a notorious piece of banking malware that
steals account credentials. The mobile component, which targeted
Symbian Series 60 devices or BlackBerrys, intercepted one-time
passcodes used to verify transactions.

The mobile app carried a legitimate signing certificate, which allowed
it to be downloaded and installed on devices. The development was
particularly disconcerting as many banks are looking at using mobile
phones to send one-time passcodes by SMS (Short Message Service)
rather than issuing separate devices that can generate the code.

There's little defense from sneaky rogue applications, but users
should be generally careful about downloading programs, particularly
for platforms where those applications may not be vetted so closely.

Traditional malware:

While desktop OSes such as Windows are plagued by malware, there have
been far fewer malicious programs aimed at mobile devices as of yet.
But researchers have seen applications such as rogue dialers, which
will send SMSes to premium-rate numbers owned by the fraudsters. Other
threats include worms spread by communication protocols such as
Bluetooth.

With the increase in use of tablet computers that use mobile operating
system, those devices will also be subject to those same threats. "We
do believe that is going to arrive in the next 12 months," said
Bradley Anstis, vice president of technical strategy for security
vendor M86. Malicious hackers are "lazy people, they will always go
after the low-hanging fruit."

Privacy, data collection issues:

Mobile applications can also have other privacy-related risks such as
collecting, transmitting or storing data. Advertising networks and
mobile application developers are often highly interested in metrics
around how and where people are using their applications. Data may
include information identifying a specific device, with users unaware
they are being tracked. Apple, however, allows application developers
to collect location information but only as long as users are
notified.

Social engineering:

Just like on desktops and laptops, fraud doesn't have to involve a
technical trick. Phishing -- the practice of using a fake website to
trick users into revealing sensitive information -- is as much or more
of a threat on mobile devices. People often trust their mobile device
more than their computer and are therefore more vulnerable to
phishing.

If a person is on a corporate network, phishing sites are usually
blocked, Anstis said. But if someone is using a work mobile device
over 3G, that connection is not going through a corporate gateway but
the operator's network, which may not block those harmful sites. M86
has been developing a browser-based system that would send URLs to its
data center for analysis and block malicious ones, Anstis said.

Other companies are also seeing opportunities for new services around
mobile devices. Juniper Networks, for example, acquired SMobile
Systems in July for US$70 million. SMobile has a laboratory in
Columbus, Ohio, that focuses on studying mobile malware, said Amir
Khan, business development manager for the U.K. and Ireland.

"The reason we set that up is because we realize the threats in the
mobile space are very specific," Khan said. "It's not just that
desktop threats have migrated to the mobile world."

@YAHOO

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