According to NQ Mobile Security Research Center, more than 160,000 Android phone owners were affected by malware called UpdtBot, which spreads itself via text messages telling people to download a software update. UpdtBot appears to be mostly in China, but even in English-speaking countries thousands of people have so far been fooled by a fake app that doesn't do what it claims to, and there are several more on the Google Play store.
Source: http://news.yahoo.com/avoid-android-malware-defective-apps-175200668.html
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