A new Android Trojan has been discovered by a security firm called Lookout. The trojan is called Notcompatible and infects Android devices by being distributed on hijacked websites. According to a blog post by Lookout the Trojan downloads to the device as an apk called update.apk. While the apk is downloaded automatically by the browser installation requires the users input and permission.
The trojan serves as a simple TCP relay/ proxy but other than that its purpose is unknown. Its method of infection is unique for an Android Trojan and presents a new direction for those seeking to gain access to the personal data found on an Android device.
The Inquirer: http://www.theinquirer.net/inquirer/news/2172510/seen-android-trojan-notcompatible-detected-lookout
Lookout Blog Post: http://blog.mylookout.com/blog/2012/05/02/security-alert-hacked-websites-serve-suspicious-android-apps-noncompatible/