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An anonymous reader quotes Bleeping Computer: Google's security team has sent out warnings via email to Chrome extension developers after many of them have been the targets of phishing attacks, some of which have been successful and resulted in crooks taking over extensions. These phishing attacks have come into the limelight this past week when phishers managed to compromise the developer accounts for two very popular Chrome extensions -- Copyfish and Web Developer. The phishers used access to these developer accounts to insert adware code inside the extensions and push out a malicious update that overlaid ads on top of web pages users were navigating.

According to new information obtained by Bleeping Computer, these attacks started over two months ago and had been silently going on without anyone noticing. All phishing emails contained the same lure -- someone posing as Google was informing extension developers that their add-on broke Chrome Web Store rules and needed to be updated. The extension developer was lured onto a site to view what was the problem and possibly update the extension. Before seeing the alert, the site asked extension developers to log in with their Google developer account, a natural step when accessing a secure backend.

pizzutz writes: Chrome's popular Web Developer plugin was briefly hijacked on Wednesday when an attacker gained control of the author's Google account and released a new version (0.49) which injected ads into web pages of more than a million users who downloaded the update. The version was quickly replaced with an uncompromised version (0.5) and all users are urged to update immediately.
Lauren Weinstein has a broader warning: While the browser firms work extensively to build top-notch security and privacy controls into the browsers themselves, the unfortunate fact is that these can be undermined by add-ons, some of which are downright crooked, many more of which are sloppily written and poorly maintained. Ironically, some of these add-on extensions and apps claim to be providing more security, while actually undermining the intrinsic security of the browsers themselves. Others (and this is an extremely common scenario) claim to be providing additional search or shopping functionalities, while actually only existing to silently collect and sell user browsing activity data of all sorts.
Lauren also warns about sites that "push users very hard to install these privacy-invasive, data sucking extensions" -- and believes requests for permissions aren't a sufficient safeguard for most users. "Expecting them to really understand what these permissions mean is ludicrous. We're the software engineers and computer scientists -- most users aren't either of these. They have busy lives -- they expect our stuff to just work, and not to screw them over."