Eset researchers have discovered a strain of Android malware that can steal the login credentials of mobile banking users.
The malware presents victims with a fake version of the login screen of their banking application and locks the screen until they enter their username and password.
The SMS-based two-factor authentication of fraudulent transactions is being bypassed without raising the suspicions of the device’s owner. Using the stolen credentials, the thieves can then log in to the victim’s account remotely and transfer money out. They can even get the malware to send them all of the SMS text messages received by the infected device, and remove these.
The Trojan spreads as an imitation of a Flash Player application. After being downloaded and installed, the app requests Device administrator rights, to protect itself from being easily uninstalled from the device. After that, the malware checks if any target banking applications are installed on the device. If so, it receives fake login screens for each banking app from its command & control server.
Once the victim launches a banking app, a fake login screen appears over the top of the legitimate app, leaving the screen locked until the victim submits their banking credentials.
This malware is subject to ongoing development. While its first versions were simple, and their malicious purpose easily identifiable, the most up-to-date versions feature better obfuscation and encryption.
The campaign discovered by Eset researchers currently targets major banks in Australia, New Zealand and Turkey, but could easily be re-focused to other sets of target banks.