Zitmo has been used by the ZeuS gang to defeat SMS-based banking two-factor authentication on Symbian, BlackBerry and Windows Mobile for a several months (see my ShmooCon slides).
Lately, there's been an active discussion on technical forums regarding ZeuS targetting Android users. We finally managed to get our hands on the mobile sample the ZeuS PC trojans are propagating. Actually, it is not a new sample and has been detected under several names (Android.Trojan.SmsSpy.B, Trojan-Spy.AndroidOS.Smser.a, Andr/SMSRep-B), but it is far more scary when propagated by the ZeuS gang.
The malware poses as a banking activation application:
In the background, it listens to all incoming SMS messages and forwards them to a remote web server. It's simple, but just enough for the ZeuS gang to grab your banking mTANs...
We'll keep you posted on this one.
-- the Crypto Girl
PS. F-Secure, s21sec and Kaspersky contributed to finding this sample. Thanks for their cooperation.