Every month or so Lookout posts a "new" report on how things are much worse that they were before. And every month or so we get these types of posts asking if the sky is falling.
Dont worry, no sky is falling.
Since this is the third or fourth thread about this lookout report, I am just going to copy and paste my post from the other threads.
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First, for those of you who are new here, welcome to AF!
Have a look here:
How to be safe, find trusted apps, & avoid viruses - A guide for those new to Android
Life with the little green robot is not as scary as you think.
Lookout are very smart guys and they know a lot about security. However, they work in an industry that makes profits off of the fear (founded or unfounded) of the user.
They publish this nonsense at least once a month on their blog. Usually it's just a rehash of some old malware, or something they downloaded from a grey market "warez" site or something. They have been doing this for many years since the WinMo days as far as I know. All the anti-virus companies release PR reports like this. And they release them often.
The media also likes to pick this up because their business is advertising based. Sensationalism is the name of the game. If they can freak you out into reading the article, then they make money. "If it bleeds, it leads."
There have been a few well publicized cases of true malware in the Android Market. But the apps that contained the malware were so incredibly stupid I couldn't even believe anyone downloaded them. They had names like "Super Duper Awesome Best Guitar App" developed by "The Super Duper Awesome Best Guitar App Team"
So yeah.
Some of the scare-mongering gets to epic proportions. Be smart, be diligent, read permissions, and understand the context of the permission, and you'll be OK. If you want to use AV software, go ahead. But don't let that be a crutch or substitute from acting responsibly and taking the time to educate yourself on good safety habits
As a side note, personally, I'd advise against reading some of the popular tech sites like Engadget/Tech Crunch/InfoWorld (and it's network) and Gizmodo.
Stick to places like ArsTechnica, Slashdot, AnandTech, HardOCP, Bittech and of course
Phandroid
Those sites care about their users and have good articles -- but even they fall prey to sensationalism. It's the very nature of "news" -- not just tech news, but all news.