Malicious App In Android Market
dumbnose writes to let us know that a fraudulent app that attempts to steal bank information has made it to the Android app store. From the alert: "NOTICE: Users of mobile devices with Android software may have noticed several applications available for download in the Android Marketplace. If you see any applications provided by the user Droid09, please do not download these applications. Android applications provided by Droid09 are fraudulent. Please remove any applications by Droid09 from your mobile device and contact your mobile provider to evaluate whether any other applications or information stored on your mobile device have been compromised." Multiple marketplaces are possible in the open Android ecosystem. Might we see the emergence of a marketplace distinguished by an iPhone-like app vetting process?
This is something that is far more unlikely to happen on the iPhone because of Apple's strict control and testing of all apps. Even the "jailbreak" stores will reject things that aren't as advertised.
Allow open development, and you've basically got a platform that the bad guys can target. There's already standards for signing code to prove that an app came from who you thought it did.
One great app I use is DroidWall, which is a simple GUI for iptables.
I set the default outbound policy to DROP, then specifically whitelist the apps that should reasonably have access to the internet.
Since Android apps have to specifically declare the privileges they require before installation (such as ability to read contact data, internet access, etc), then it's easy to make sure that all apps that read personal data are not whitelisted, unless they come from a reputable developer (e.g. Google-made apps). Any app that can read my contacts data, my calendar, my email, etc, is sure as hell not getting internet access for "usage statistics" or whatever other lame excuse they give.
I wish this functionality was built into the OS, rather than having to do it manually (for example, a way to disallow internet access during installation) -- but at least it's doable on Android. I don't think any other phone platforms give this level of permission separation or control. I'm not so sure that app review would really fix the overall problem; it might catch the obviously-malicious phishing apps like in this story, but I bet that the app auditors' opinion on what is a privacy violation differs greatly from my own.
I still wouldn't use my banking info on my phone regardless, since a phone is so easily losable, and locking/unlocking the data everytime with a secure passphrase would probably be too inconvenient. At very most, I would only allow read access to transactions from my phone (if banks offered this), thereby limiting the amount of useful information or control a would-be attacker could gain from compromising my phone.
Sandboxing is an "always deny" tech that keeps legit applications from working easily. Effective, yes. Going to catch on with the average user, no.
Android has sandboxing, to a degree
Each app has its own user and group ID, and filesystem permissions are used to determine what data an app can access.
Additionally, apps have to declare the special permissions they require before installation, such as internet access, read contacts data, etc...
Android is way ahead in this department -- this story is simply a case of phishing: the users thought the app was a legit bank app, and they willingly gave their sensitive information to it. It's hard to prevent against that without user training, and the success of normal email/website phishing has shown that very few users are "trained" in this sense...
Quite easy to give and verify a fake address, especially if it's in a foreign country.
Once again, easy to do with a foreign bank.
There are plenty of easy ways to prove addresses that can be easily faked, bank statements, utility bills. Plus there is the idea of using someone else's identity entirely.
Let me put it this way, anyone smart enough to develop a scheme like this is smart enough to defeat Apple's rudimentary address/credit checks.
You seem to have a lot of faith in Apple's ability to detect a hidden scam once it has already penetrated their security (the app store). It's entirely plausible that this kind of phishing go on for weeks or months without anyone noticing, especially seeing as Apple are the only watchman and considering what the average iphone user understands about information security.
Calling someone a "hater" only means you can not rationally rebut their argument.